19 June 2012
JEDDAH - Saudi Airlines Catering Company (SACC), the catering unit of Saudi Arabian Airlines, is seeking to raise SR1.3 billion ($350 million) by floating 30 percent (24,600,000) of its shares for individuals, the prospectus showed as the initial public offer opened to retail investors Monday.
Institutional investors subscribed to 50 percent of them, leaving retail investors to subscribe to the other half between June 18 and 24 at a price of SR54 per share, which was determined by a book-building process.
The sale of shares has been keenly awaited by investors as the company will be the first part of the Saudi flag carrier, one of the Kingdom's largest state-owned entities, to be listed on the stock market.
Saudi Arabian Airlines started a process of privatization in 2006 by splitting into six units: catering, cargo, maintenance, airlines, flight academy and ground handling. It plans to privatize each of the units individually and offer them to the public.
The catering unit initially aimed for a flotation in late 2010, but it ran into delays in securing regulatory approval.
The listing of the unit will be the fifth in the Saudi stock market this year.
Saudi Fransi Capital, the investment arm of Banque Saudi Fransi, has been appointed lead arranger for the IPO and is the issue's co-underwriter along with Saudi Hollandi Capital.
Eng. Khaled Bin Abdullah Al-Molhem, the director general of Saudi Arabian Airlines and chairman of the board of SACC, said during the international press conference held in Al Faysalia tower in Riyadh that the subscription started from June 18 will close June 24. Each individual investor is allowed to subscribe a minimum of 10 shares and 250 thousand shares as maximum.
If the number of subscribers exceeds 1,230,000, the company will not guarantee the minimum rate of allocation and the subscription shares will be equally allocated to all subscribers.
The process of allocation and the refund of the subscription surplus will be announced July 1, 2012. Al-Molhem maintained that the Saudia Catering Company will offer the subscription of its shares during the subscription period through the concerned banks, which are: Rajhi Bank, SAMBA, the Commercial National Bank, Dutch Saudi Bank, National Arabian Bank, SABB, French Saudi Bank, Riyadh Bank, Saudi Bank For Investment, Al Jazira Bank.
French Saudi Capital Bank will act as the financial consultant, the subscription manager and the corporation subscription book manager. The French Saudi Capital Bank and the Dutch Saudi Capital Bank will act as the underwriters.
JEDDAH - Saudi Airlines Catering Company (SACC), the catering unit of Saudi Arabian Airlines, is seeking to raise SR1.3 billion ($350 million) by floating 30 percent (24,600,000) of its shares for individuals, the prospectus showed as the initial public offer opened to retail investors Monday.
Institutional investors subscribed to 50 percent of them, leaving retail investors to subscribe to the other half between June 18 and 24 at a price of SR54 per share, which was determined by a book-building process.
The sale of shares has been keenly awaited by investors as the company will be the first part of the Saudi flag carrier, one of the Kingdom's largest state-owned entities, to be listed on the stock market.
Saudi Arabian Airlines started a process of privatization in 2006 by splitting into six units: catering, cargo, maintenance, airlines, flight academy and ground handling. It plans to privatize each of the units individually and offer them to the public.
The catering unit initially aimed for a flotation in late 2010, but it ran into delays in securing regulatory approval.
The listing of the unit will be the fifth in the Saudi stock market this year.
Saudi Fransi Capital, the investment arm of Banque Saudi Fransi, has been appointed lead arranger for the IPO and is the issue's co-underwriter along with Saudi Hollandi Capital.
Eng. Khaled Bin Abdullah Al-Molhem, the director general of Saudi Arabian Airlines and chairman of the board of SACC, said during the international press conference held in Al Faysalia tower in Riyadh that the subscription started from June 18 will close June 24. Each individual investor is allowed to subscribe a minimum of 10 shares and 250 thousand shares as maximum.
If the number of subscribers exceeds 1,230,000, the company will not guarantee the minimum rate of allocation and the subscription shares will be equally allocated to all subscribers.
The process of allocation and the refund of the subscription surplus will be announced July 1, 2012. Al-Molhem maintained that the Saudia Catering Company will offer the subscription of its shares during the subscription period through the concerned banks, which are: Rajhi Bank, SAMBA, the Commercial National Bank, Dutch Saudi Bank, National Arabian Bank, SABB, French Saudi Bank, Riyadh Bank, Saudi Bank For Investment, Al Jazira Bank.
French Saudi Capital Bank will act as the financial consultant, the subscription manager and the corporation subscription book manager. The French Saudi Capital Bank and the Dutch Saudi Capital Bank will act as the underwriters.
© The Saudi Gazette 2012
