RIYADH: Following its successful closing of the Eithad Atheeb Telecom subscription, Saudi Hollandi Capital (SHC) has been appointed by Mawarid Holding Co. (MHC) to act as financial adviser and lead manager for the IPO of MEED Trading Co.
The signing took place at MEED's office in Riyadh, an official statement said yesterday. The IPO is expected to take place during the fourth quarter of 2009 contingent upon the approval of the regulatory authorities.
SHC CEO Tahir Al-Dabbagh said he was looking forward to more IPOs in the local market driven by investor readiness to invest in upcoming transactions. Al-Dabbagh added in a statement that the significant oversubscription of Eithad Atheeb Telecommunication Co., the first IPO in 2009, coupled with the successful closing of SHB's Sukuk transaction in December 2008, reflect the stability of the investment environment in the Kingdom.
"They also show the investors' ability to take market developments in their stride and their eagerness to grasp sound investment opportunities," he said.
MEED operates more than 200 convenience stores across Saudi Arabia under the Meed brand name. Prior to the IPO, MEED will be restructured to own a majority stake in seven other companies of the Mawarid Group -- Mawarid Food Company, Mawarid Marocaine, Saudi Agricultural Development Company, Saudi Poultry Company, Carton Products Company, Sahba Factory for Liquid Eggs Company and Gulf Organic Fertilizer Company.
MFC holds the franchisee license for operating the Pizza Hut brand of casual dining restaurants all over Saudi Arabia, except in Jeddah, and currently operates more than 100 outlets across the Kingdom.
© Arab News 2009
