Mar 01 2007 |
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Saudi Arabia: MedGulf Initial Public Offering Oversubscribed Four Times
JEDDAH, 1 March 2007 -- Nearly 1.5 million Saudis subscribed to MedGulf shares during the insurance company's initial public offering (IPO) that ended on Monday. The IPO that offered 20 million shares worth SR200 million was oversubscribed four times.According to a statement issued by National Commercial Bank , which managed the IPO, as many as 1,413,974 investors applied for 78,559,570 shares valued at SR785.595 million.
Basil M. Al-Ghalayini, CEO of BMG and Financial Advisors, said: "This outstanding result shows the strength of MedGulf and its leading position in the Saudi market. Furthermore, with over 1.5 million subscribers it is testimony of the successful policies of SAMA (Saudi Arabian Monetary Agency) and CMA (Capital Market Authority) and the wise leadership of Saudi Arabia to allow the maximum number of citizens to benefit from promising economic sectors in the country." He added that "the conclusion of the MedGulf IPO timed with a new rally in the stock market. So the new insurance IPOs will witness similar success in the future."
The CMA earlier this week has also announced the IPO of five more insurance companies in the Kingdom beginning on March 17 which will continue for 10 days.
The SABB Takaful is offering 3.5 million shares, or 35 percent of total shares worth SR100 million. The Saudi French Cooperative Insurance Co. is offering 3,100,000 shares representing 31 percent of the total capital of SR100 million.
Banks appointed by the companies, the names of which will be announced later, will operate the IPOs.
By Khalil Hanware
© Arab News 2007
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