Revered Muslim Scholar Prof. Shaikh Abdulla Al Mutlaq issued a Fatwa sanctioning the IPO and the trading of Fawaz Abdulaziz Alhokair & Company shares in the market. Prof. Al Mutlaq has also asserted that all operations of the Company are Shariah compliant.
The Fatwa clearly states that "The Company's activities are Shariah compliant, and as stated in their prospectus, the Company holds no liabilities and has no investments that contradict with the Shariah rules and regulations. Therefore the company is considered "Naqia", and that buying and selling of its shares is Halal".
Fawaz Abdulaziz Alhokair & Company recently unveiled its prospectus in advance of the initial public offering (IPO) to raise SR1.32 billion (US$ 352 million).
The proceeds of the IPO will go to the founding shareholders. The share capital of Fawaz Abdulaziz Alhokair & Company is SR400 million (US$106.7 million) consisting of 40 million fully paid ordinary shares with a nominal value of SR10 (US$2.66) each with a premium of SR 100 per share. The Company will be offering 30% of its share capital - 12 million ordinary shares - through the IPO.
The IPO will be open for subscription for 10 days from Saturday October 7th to Monday October 16th, 2006. The minimum number of shares that an individual investor can subscribe is 10 shares and a maximum of 25000 shares.
For the fiscal year ended March 2006, Fawaz Abdulaziz Alhokair & Company had sales of SR1.3 billion, showing growth of 30% as compared to 2004/05, with net income increasing by 41% to SR246 million.
Fawaz Abdulaziz Alhokair & Company sold more than 15 million items in 2005/06 and served more than 12 million customers. As of March 2006, the Company had 617 stores and 42 international brands in its portfolio.
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© Press Release 2006
