RIYADH: HSBC Saudi Arabia Ltd., the financial adviser and SABB, the Underwriter of Malath Cooperative Insurance and Reinsurance Company's Initial Public Offering (IPO) announced that at the end of last day (Monday) the IPO was covered by 493.98 percent, whereas subscription amount reached SR703,649,500. Malath had offered for subscription 14,244,465 shares representing 47.48 percent of its SR300 million capital. Subscription through electronic channels such as ATMs, Internet and telephone banking represented more than 71 percent of the total subscription, which was achieved in cooperation with the Saudi Fransi Bank, National Commercial Bank, Samba, Saudi Hollandi Bank, Riyad Bank, Arab National Bank, Bank Al-Jazira, Al-Bilad Bank, Rajhi Bank and the Saudi Investment Bank, in addition to SABB, the IPO underwriter.
Aywans Carabatex, CEO of Corporate Finance and Financial Consultations in HSBC Saudi Arabia said, "High demand was seen by subscribers on the IPO of Malath Cooperative Insurance and Reinsurance. Subscribers were confident about the future and position of the company and the role it is expected to play in the cooperative insurance industry. The most important feature of this IPO was that more than 71 percent of subscribers have made their subscriptions through electronic channels, which helped in reducing crowdedness at the receiving banks."
On the other hand, Mubarak Al-Khafra, president of the founding committee of Malath Cooperative Insurance and Reinsurance Co. expressed appreciation to subscribers for their great confidence in Malath.
He said, "The huge success of Malath IPO will certainly support its competitive ability and position in the insurance market. Malath is now prepared to introduce its services and produces after completion of the required procedures. Through more transparency, appropriate and outstanding launch of our corporate image and direct access to the targeted future markets, we are confident that Malath as a public joint stock company will be a strong and competitive player."
© The Saudi Gazette 2007
