The Hail Cement Company (HCC) will launch its initial public offering (IPO) on September 20 following the approval of the IPO by the Capital Market Authority (CMA) of Saudi Arabia.

The total size of the offering is SR489.5 million ($130.53 million) with the subscription period set to end on September 26. Shares will be offered at par value of SR10 per share.

The approval of HCC’s IPO confirms GIB Financial Services (GIBFS) status as a market leader, being the only investment bank in Saudi Arabia that has successfully executed at least one IPO transaction every year since 2008, a statement said.

In 2008, GIBFS acted as financial advisor for the IPOs for Halwani Bros Company and Abdulla Al Othaim Markets Company. In 2009, GIBFS was the financial advisor for Saudi Steel Pipe Company IPO, which was the first premium IPO in Saudi Arabia after the impact of the credit crisis. In 2010, GIBFS advised on the IPO of Abdullah A M Al Khodari Sons Company, the first general contracting company to be listed on the Saudi Stock Exchange (Tadawul) and the largest premium IPO in Saudi Arabia since 2008.

Gulf International Bank (GIB) chief executive officer Dr Yahya A Alyahya said: “We are very pleased with this announcement, which reflects upon the skills and capabilities of GIBFS as the leading provider of corporate finance advisory services.”

Dr Alyahya added: “While the global and regional markets have faced difficulties since 2008, GIBFS has demonstrated its commitment to the Saudi capital market and to its clients by continuously bringing investment opportunities to investors. GIBFS’s ability to repeatedly raise equity capital throughout difficult market conditions reflects on the strength of its brand name and the quality of its investment banking team.”

GIBFS was established in 2008 as a fully-owned subsidiary of GIB to carry out investment banking activities within Saudi Arabia and is duly authorised by the CMA.  GIB and GIBFS have an established track record of advising on a number of successful IPOs in Saudi Arabia. To date, GIB and GIBFS have introduced offerings to the kingdom’s capital market in excess of SR19 billion ($5 billion).  - TradeArabia News Service