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Wed 20 Jun 2007 02:46 PM

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Saudi Printing seeks $106m in IPO

The Arab world's largest news publisher plans a 30% stake sale later this month.

Saudi Printing and Packaging Co. (SPPC), owned by the Arab world's largest news publisher by market value, plans to raise 396 million riyals ($105.6 million) by selling shares in an initial public offering this month.

SPPC will sell 18 million shares, or a 30% stake, at 22 riyals per share, al-Eqtisadiah and Asharq al-Awsat newspapers reported on Wednesday. Both papers are published by Saudi Research and Marketing Group  which is also SPPC's parent company.

The price values SPPC at 1.32 billion riyals.

Ramzi Zeini, spokesman for Samba Financial Group, the IPO's financial advisers, could not be reached for comment.

Between half and 70% of the shares on offer would be reserved for institutions with the rest going to retail investors, the newspapers quoted Samba as saying.

The institutional portion of the offer will fall to 9 million shares if more than 540,700 individual investors apply for shares, it added.

The firm specialises in the production of daily newsprints and other loose-leaf publications, magazines, and commercial and packaging printing, its website said.