Wednesday, May 14, 2008
(This story was originally published on Tuesday.)
BEIRUT (Zawya Dow Jones)--Subscription in the initial public offering of Saudi-based Mohammad Al Mojil Group totaled 6.6 billion Saudi riyals ($1.76 billion) and covered 314% of the IPO value, HSBC Saudi Arabia Ltd. the lead manager and advisor said Tuesday.
Al Mojil, a construction firm with a focus on management of construction projects in the oil, gas and petrochemical sectors in the Kingdom, has offered 30% of its shares in the IPO valued at SAR2.1 billion.
"We have received subscriptions for 94.2 million shares in the retail and institutional tranches by the close of the IPO. Applications have been received from approximately 2.8 million subscribers in the retail tranche, with proceeds reaching SAR2.9 billion," Osama As'ad, director of investment banking at HSBC Saudi Arabia Ltd. said in a statement.
Al Mojil offered 30 million shares at SAR70 each in the IPO which began May 3 and closed Monday.
"Approved institutional investors have subscribed for 53.3 million shares, with proceeds amounting to SAR3.7 billion. Total proceeds from the two tranches covered 314% of the entire IPO," As'ad said.
In response to huge demand Al Mojil Group increased Saturday the portion allocated to individual investors to 70% from the previously planned 30%.
"The final subscription data will be announced as scheduled on Sunday, along with the details of allocation and refunds to all subscribers," As'ad added.
-By Shikrallah Nakhoul, Zawya Dow Jones, +961 1 985757, shikrallah@zawya.com
Copyright (c) 2008 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
14-05-08 0433GMT
