RIYADH: Saudi Integrated Telecommunications Co.'s (SITC) SR300 million initial public offering (IPO), this year's first IPO on the biggest Arab bourse, was more than twice oversubscribed, according to official figures. The SR300 million IPO raised SR880.7 million, AlBilad Investment Co., the financial adviser, IPO lead manager and leader underwriter of the IPO, said while announcing the successful closing of the IPO and the allocation of shares for all the subscribers.
The total number of subscribers reached 1,100,302 valued SR880,740,500 million, with a coverage percentage of 294 percent. The subscription through the banks' electronic channels (ATM, phone banking and the Internet) represented 94 percent and the remaining 6 percent came from direct subscriptions through the branches of the participating banks.
The final allocation of shares and surplus refund to all subscribers will take place on Saturday, after all the participating banks have completed the auditing and settlement processes of the IPO that ended on Sunday.
Fahad Al-Enezy, acting CEO of AlBilad Investment Co., said the allocation of shares has been completed and approved by the Capital Market Authority (CMA), according to the subscription allocation schedule.
Al-Enezy referred to the help and support shown by the governmental sector represented by the CMA and appreciated the receiving banks for their positive cooperation and remarkable participation as all the involved parties have acted as one team to achieve the remarkable success of SITC's IPO. He also thanked the SITC and its management for their trust in AlBilad Investment Co.'s abilities and giving the opportunity to play that role as a financial advisor, IPO lead manager and lead underwriter, assuring that this trust is an honor for AlBilad Investment.
The telecoms company had offered 30 million shares, or 30 percent of its capital, at SR10 each to Saudi investors and the subscription closed on May 8. Another 5 million shares were allocated to the General Organization for Social Insurance. The firm, which will be the third to offer landline services in the world's largest oil exporter, along with state-run Saudi Telecom Co. and Atheeb Telecom, will use subscription proceeds to pay off license fees, Reuters said quoting a top SITC official last week. SITC will raise the number of listed operators in the Kingdom to five, also competing with Etihad Etisalat (Mobily) and Saudi Zain.
© Arab News 2011
