Samba to lead Mideast's biggest mining IPO

PUBLIC OFFERING: Samba Capital has been appointed the lead manager of Maaden's $2.47 billion IPO. (Getty Images)

Saudi Arabian Mining Co (Maaden) has appointed a subsidiary of Samba Financial Group to lead manage its 9.25 billion riyal ($2.47 billion) share sale next month.

Maaden, which will sell 462.5 million shares in the IPO, has appointed Samba Capital as lead manager and underwriter for the sale, according to a statement from the company. The IPO is scheduled for July 5-14.

The IPO, which be the Middle East's largest offering in a mining company, will offer Saudi institutional and retail investors 50 percent of Maaden's capital at 20 riyals per share.

Maaden estimates its total investments at 60 billion riyals, including phosphate, bauxite, gold and industrial minerals.

Maaden said this month it had secured loans worth several billion dollars from Saudi and Korean institutions for its phosphate project in cooperation with Saudi Basic Industries Corp (SABIC). The IPO is to cover some of the costs.

Maaden said last year the bill for the phosphate venture had soared to 21 billion riyals, 62 percent more than it had expected, due to a rise in labour and material costs. (Reuters)

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