RIYADH: The Investment for Securities Company (ISC) will go for an Initial Public Offering (IPO) shortly following the anticipated permission of the Capital Market Authority (CMA), the company announced here on Monday.
Last year, the company reported a net profit of SR10 million, 2,907 percent up over the previous year profit of SR103,000.
"The company has submitted a request to CMA to place part of its capital for the IPO," said Abdullah Mohammed Al-Fouzan, head of ISC's board of directors.
He added that the ISC will be the first investment bank in the Kingdom to go for the IPO. "The trend is in compliance and harmony with CMA's role to support licensed investment companies for optimal performance in a way to preserve and protect the shareholders and clients' rights equally," he added.
He said the decision for the issuance of IPO was based on the company's desire to force more standards of observation and discipline on its operations in harmony with the government's monetary regulations, which would eventually enhance the degree of professionalism and further boost investors' confidence.
Al-Fouzan said the company attained a significant performance in its investment operations through its investment products and services offered to the Saudi market by adopting the best investment professional practices.
He explained that the quantum leap in the income was mainly due to the company's expansion programs, especially in its asset management. The company inaugurated a number of real estate funds in the financial year 2010. "The investment funds made a significant and spectacular performance in comparison with similar funds in the Saudi market and the Murabaha Investor Fund, which was ranked top revenue earner of the company for two consecutive years," he added.
Bander Al-Ahmadi, chief executive officer (CEO) of ISC, said the company was founded in 2007 with a CMA license, and operates as an investment bank to conduct operations such as dealing, asset management, arranging, advisory and custody. The company consists of individuals and Saudi and Kuwaiti companies with a declared capital of SR400 million. "The company is reputed and well known in the Saudi and Gulf market for offering its services with the help of qualified personnel who always lend the best technical support to customers," said Al-Ahmadi.
Mentioning that the company's asset management exceeded SR1 billion, Al-Ahmadi said it enjoys a solid financial position along with excellent financial indicators. "It has no liabilities. It aims to expand its operations to regional markets with an ambitious plan to place 100 real estate funds within the next five years," he added.
© Arab News 2011
