Royal Jordanian goes public

Royal Jordanian Airlines is planning to sell a 71% stake by launching on the Amman Stock Exchange.
Royal Jordanian goes public
By Rob Morris
Wed 21 Nov 2007 03:29 PM

Royal Jordanian Airlines is planning to sell a 71% stake by launching on the Amman Stock Exchange.

The Jordan-based carrier will issue some 59.9 million existing shares worth between JD2.75 and JD3.40 each to public buyers and selected institutional investors.

Meanwhile, a fund holding more than 6.7 million shares has been established as an incentivisation scheme for the airline's employees.

The IPO was launched by the government of the Hashemite Kingdom of Jordan, which owns a majority stake in Royal Jordanian.

When announcing the share issue on Monday, Royal Jordanian Privatization Group chairman HE Nasser Lozi said: "The government made a commitment in 2006 to proceed with the second phase of the privatisation of Royal Jordanian. Following in-depth planning and extensive preparation, we are pleased to announce that we are ready to move forward on the privatisation, with the offering of up to 71% of government shares to the general public in Jordan and to Jordanian and international institutional investors.

Lozi, who also chairs the airline, added: "Royal Jordanian has undergone significant changes over the past three years and today is well placed for the future."

Royal Jordanian CEO Samer Majali believes the airline is ready to list following recent growth. "Royal Jordanian is the only Middle Eastern carrier to be part of a global alliance and intends to leverage its oneworld membership to service a growing international network," he said.

"Under a proven, results-orientated management, Royal Jordanian has been enhancing its product offering and increasing its efficiency through fleet modernisation. A continuation of investment in human capital has generated efficiency gains through improved work processes and capabilities.

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