Knowledge City to sell shares by May
Riyadh, April 18, 2009
Saudi property developer Knowledge Economic City (KEC) plans to sell shares to the public within 30 days, the commerce and industry ministry said today (April 18).
The ministry approved setting up the firm with a total capital of SR3.393 billion ($904.8 million), or 339.3 million shares of which 30 per cent will be floated, state news agency quoted the ministry as saying.
The initial public offering will take place within 30 days after the ministry's approval, it added without giving pricing details.
KEC is the lead developer of a knowledge-based city near the holy city of Medina that aims at attracting investments worth up to SR30 billion and housing some 150,000 people, according to the developer's website.
KEC is among four mega property projects planned by the kingdom to diversify its oil-based economy and create jobs for a rapidly growing native population.
"(It will) act as a cultural landmark serving visitors, and become a national icon for knowledge-based industrial development," KEC said.
The project hopes to spur the creation of knowledge-based industries and would include hotels and shopping centres for the hundreds of thousands of pilgrims who visit Medina each year.
The city of 30,000 residential units, 1,200 shops and hotel accommodation for 30,000 visitors is projected to create 20,000 jobs, KEC added. – Reuters