AMMAN (JT) -- Atlas Investment Group, the investment banking arm of the Arab Bank Group, announced this week the successful closing of the subscription into the JD85 million private placement of Saraya Aqaba Real Estate Development PSC, known as "Saraya Aqaba."
The company is currently developing the $616 million Saraya Aqaba project on the northern shores of the Gulf of Aqaba with construction work expected to end by 2009. The project is anticipated to reshape the city of Aqaba.
The offering placement, with an original size was of JD85 million ($120 million), divided into 85 million shares, for JD1.00 each, was heavily oversubscribed.
Aimed at increasing the capital of Saraya Aqaba, the offering placement attracted strong demand from both institutional investors and high net worth individuals.
In an effort to increase the attractiveness of the investment in and the scope of the Saraya Aqaba project, and after studying additional future projects, the Saraya Aqaba board of directors recommended to its general assembly raising the size of the offering by JD30 million ($42 million) to JD115 million ($162 million). As such, the company's capital will be increased from JD172 million ($243 million) to JD287 million ($405 million).
"We are extremely pleased with the results of the private placement and the interest generated amongst prominent local and international individual and institutional investors, resulting in the placement receiving subscriptions from 12 countries around the world," said Ali Kolaghassi, vice chairman of Saraya Aqaba.
Atlas Managing Director, Omar Masri, expressed delight with the successful closure of this offering. Atlas and the Arab Bank network, in Jordan and abroad, have lead managed one of the single largest equity private placements in the history of Jordan to date.
Subscription commitments were received from the diverse base of subscribers with 92 per cent of funds coming from institutional investors, and eight per cent from high net worth individuals.
The successful closure of the private placement followed the ending of a full-fledged local and regional road show that Arab Bank and Atlas, alongside officials from Saraya Aqaba, has conducted over the past few weeks, leveraging on Arab Bank's regional platform.
© Jordan Times 2005
