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Sun 30 Oct 2011 07:27 PM

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Saudi tech retailer set to launch 30% IPO

United Electronics Company will sell 7.2m shares to the public between Dec 5-11

Saudi tech retailer set to launch 30% IPO
United Electronics Company, one of the largest consumer electronics retailers in Saudi Arabia, will launch a 30 per cent initial public offering in December

United Electronics Company (eXtra), one of the largest consumer electronics retailers in Saudi Arabia, will launch a 30 per cent initial public offering in December, a statement from the company said on Sunday.

The bookbuild-structured offering, which will see 7.2 million shares sold to the public, will take place between December 5-11.

Under a bookbuild process, a price for the shares is determined during a marketing period prior to the launch of the offer period.

HSBC Saudi Arabia is lead manager and lead underwriter for the IPO, with Blominvest Saudi Arabia acting as co-underwriter.

Mohammed Galal, chief executive of eXtra, told Reuters in March that the company was planning an IPO in the second half of 2011 to fund store expansion in Saudi Arabia and the wider Middle East.

The company had an annual turnover of over SR2bn ($533.3m) in the year to June 2011 and earnings of SR126.5m, according to the statement.

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