DAMMAM, 9 December 2006 -- Wala Insurance, a Saudi cooperative insurance company to be opened next year, will launch 40 percent of its 20 million shares in an initial public offering (IPO). The company also aims to be included in the Tadawul listing after all the regulations and bylaws are in place, Suleiman ibn Abdullah Al-Qadi, chairman of the board of directors of the Wala Insurance said here yesterday.
"The SR200-million company will issue eight million shares at the rate of SR10 per share to the public by February after completing the required formalities. The founding members have divided 12 million or 60 percent of the shares between themselves and will start its operations by the second quarter of 2007 after completing the IPO and the holding of the first general assembly," Al-Qadi said.
The contract for completing the formalities regarding the IPO have been signed with the Financial Group Bureau which will conduct all the studies and analyses of various aspects of the launching and operations of the company.
The company is yet to receive the license from the Saudi Arabian Monetary Agency (SAMA).
The contract includes the preparation of financial statements and initial budget, organizational structure, and defining its services and products and planning for the financial proposals for the next five years.
The company with its main office at Alkhobar aims to launch its new insurance products to the Saudi market, which is projected to grow from the present $1.55 billion to $2.1 billion by the turn of 2010. The company also aims to expand to the Middle Eastern market in addition to opening branches in all the regions in the Kingdom and the Gulf.
The first board meeting elected Suleiman as the chairman and Abdullah Al-Othman as the deputy chairman.
By Faiz Al-Mazrouei
© Arab News 2006
