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Sun 1 Oct 2006 12:00 AM

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Alhokair Ploys SR 1.32 Billion IPO


Fawaz Abdulaziz Alhokair & Company has unveiled the prospectus for its SR 1.32 billion (US $352 million) initial public offering (IPO).

The IPO was set to go ahead on Saturday October 7 and run until Monday October 16.

The minimum number of shares that an individual investor can subscribe for is 10 and the maximum is 25,000.

“We are confident that Saudis would like to be part of our growing and profitable company.

Fawaz Abdulaziz Alhokair & Company shares will add diversity to any investor’s portfolio,” said Dr. Abdulmajeed Alhokair, chief executive officer, Fawaz Abdulaziz Alhokair & Company.

“Fashion retailing is growing at more than 20% per annum and has the potential to continue to show robust growth in the future.

We welcome all our Saudi brothers and sisters to invest in Fawaz Abdulaziz Alhokair & Company and the message is: come join us, have a slice of future prosperity and be involved in the growth of a business that is part of everyday life in the Kingdom.”

The proceeds of the IPO will be used for KSA and regional business expansion.

The share capital of Fawaz Abdulaziz Alhokair & Company is SR 400 million (US $106.7 million) consisting of 40 million fully paid ordinary shares with a nominal value of SR 10 (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.

for the fiscal year ended March 2006, Fawaz Abdulaziz Alhokair & Company had sales of SR1.3 billion, showing growth of 30% over 2004/05, with net income increasing by 41% to SR246 million.

As of March 2006, the Company had 617 stores and 42 international brands in its portfolio, including Zara, Massimo Dutti, Promod, Adams, Aldo and Monsoon.

It has a strong product offering across all major segments like womenswear, menswear, kids & teens fashion, footwear and accessories to name a few.

HSBC is the financial adviser and lead manager on the IPO, Saudi British Bank is the sole underwriter of the IPO, while Deloitte & Touche Bakr Abulkhair & Co are the registered auditors.

The legal adviser to the transaction is the law office of Mohammed Al-Sheikh.

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