22 July 2006

Dubai: Saudi retailer Fawaz Abdul Aziz Al Hokeir Group has been given the go-ahead for an initial public offering (IPO).

The share capital of the company is 400 million Saudi riyals ($104 million) consisting of 40 million shares with a nominal value of 10 riyals ($2.66) each.

Alhokeir will be offering 30 per cent of its share capital 12 million shares through the IPO.

The company currently manages over 40 international fashion retail brands across a network of more than 600 stores in the kingdom. The group also has multiple interests in food retailing, real estate and construction.

The IPO will be open for 10 days from October 7 to 16. The share allocation has been determined at a minimum of 25 and a maximum of 25,000 shares.

Famous names

Fawaz Abdul Aziz Al Hokeir Group Chairman, said the IPO is an important milestone that will support the development of the Saudi stock market and strengthen the commercial institutions in the country.

It comes at a time when our fashion retail business is developing rapidly and gaining in strength. We believe an IPO is a natural evolution and is a way for investors to be involved in the growth of a business that is part of everyday life in the kingdom, he added.

HSBC and Saudi British Bank (SABB) are the financial advisers, lead manager and underwriter of the IPO, while Deloitte and Touche Bakr Abulkhair & Co are the registered auditors and reporting accountants. The legal adviser to the transaction is the Law Office of Mohammad Al Shaikh.

For the fiscal year ending in March, Fawaz Abdul Aziz Al Hokeir Group had sales of 1.3 billion riyals, showing growth of 30 per cent on the previous years figures, with net income increasing by 41 per cent to 246 million riyals.

The stores of Fawaz Abdul Aziz Al Hokeir Group sold more than 15 million items during the last financial year and served more than 12 million customers.

In the twelve months leading to April it opened 175 new stores and is on target to open a further 150 before April next year. Its international brands are some of the worlds most famous and recognizable including Zara, Massimo Dutti, Promod, Adams, Nine West, Aldo and Monsoon.

By Staff Reporter

Gulf News 2006. All rights reserved.