Zain Saudi names BSF IPO lead manager
Riyadh, February 6, 2008
Zain in Saudi Arabia, the new mobile entrant into Saudi market has appointed Banque Saudi Fransi (BSF) as the lead manager for its forthcoming IPO.
The company also signed the underwriting and receiving bank agreements with BSF for the management of its IPO, which opens from February 9 to 18.
Zain in Saudi was qualified by the Communication and Information Technology Commission (CITC) in July last year for getting the country’s third mobile operator licence. It is scheduled to commence mobile operations in the first half of this year.
After the signing ceremony, Zain in Saudi CEO Dr Marwan Alahmadi said, 'We are delighted to appoint BSF as the lead manager and lead underwriter for the IPO. BSF will bring great value and expertise in ensuring a smooth floatation.”
'We intend to differentiate ourself in the Kingdom by: focusing on delivering a high quality of service based on a network that is developed to the highest standards, contracting with leading vendors and suppliers; and offering simple, clear products and services that can be readily understood by customers and potential customers, with, for example, simplified pricing plans and features that are relevant to specific customer segments based on their expected utilisation,' he added.
Jean Marion, BSF managing director said, 'BSF is honoured to be selected by Zain and we look forward to working with them and the other involved banks.”
Zain has also appointed five Saudi banks as co-underwriters for the IPO. The five banks; Al Rajhi Bank, Bank Al Bilad, Riyadh Bank, Saudi Hollandi Bank and NCB Capital, will work in concert with BSF to bring the IPO to market.
In addition, Zain in Saudi Arabia has signed agreements with BSF, Al Rajhi Bank, Arab National Bank, Bank Al Bilad, Bank Al Jazira, National Commercial Bank, Riyadh Bank, SAMBA, SABB, Saudi Hollandi Bank and the Saudi Investment Bank, to act as receiving banks for the IPO subscriptions.
The IPO consists of 700 million Shares (the 'Offer Shares') priced at SR10 per share. This represents 50 per cent of the share capital of the company, which is being made available to individual investors who are Saudi nationals.
The offer is also open to Saudi women who are divorced or widowed. Besides those who have children by a non-Saudi husband can also subscribe for 'offer shares' in the name(s) of any of those children who are minors.
About 630 million shares, representing 90 per cent of the 'offer shares,' will be allocated to the Saudi public while the remaining 70 million shares will be allocated to the Public Pension Agency.
Subscription forms are available on the Zain in Saudi Arabia website (www.sa.zain.com), BSF branches or its corporate website (www.alfransi.com), besides from the CMA website (www.cma.org.sa) and the 11 receiving banks.-TradeArabia News Service