Saudi Arabia's Capital Market Authority (CMA) announced yesterday the price of the initial public offering (IPO) for the shares of Dammam-based general contracting firm, Abdullah A. M. Al- Khodari Sons Company after successful coverage by the institutional investors.
The company will offer up to 50 per cent of its 12.75 million floated shares to retail investors between October 4 and 10.
Abdullah A.M. Al-Khodari Sons Co. (Al-Khodari) plans to launch an initial public offering (IPO) valued at approximately $113.33m of 12.75m shares, the equivalent of 30pc of the company's capital.
The company appointed GIB Financial Services (GIBFS), a subsidiary of Kingdom-based merchant bank, Gulf International Bank (GIB), as its financial advisor and lead manager and GIBFS and Riyad Capital as its co-underwriters for the IPO.
"The successful coverage of the IPO reflects the strong merits of the company and the vitality of the Saudi capital market, complemented by market confidence in the skills and capabilities of GIBFS as the leading provider of investment banking services," said GIB's CEO and Chairman of GIBFS, Dr. Yahya A. Alyahya.
Alyahya said GIBFS advised several successful IPOs in Saudi Arabia, introducing offerings to the Kingdom's capital market in excess of $5bn.
"Subsequent to the listing, Abdullah A.M. Al-Khodari Sons Company will be the only contracting company on Tadawul with well diversified operations across various segments within the infrastructure sector."
Al-Khodari, founded in 1966, operates as a general contractor for a wide range of industries from general civil construction, oil and gas, water and sewage, electrical works and heavy steel/metal fabrication, and also in operation and maintenance for various plants and facilities.
By K.V.S. Madhav
© Bahrain Tribune 2010
