Jouf Cement to raise $173m from IPO
Riyadh, July 17, 2010
Al Jouf Cement plans to raise SR650 million ($173.3 million) by selling new and existing shares to the Saudi public, with over half of the proceeds going to the founders of the firm which started operations in May.
Over the July 19-25 period, Al Jouf will offer Saudi investors 27.9 million new shares and 37.1 million existing shares at SR10 each to raise the total number of its shares to 130 million, the listing prospectus showed.
About 55.5 per cent of the IPO's proceeds will go to founding shareholders who include at least one member of the Saudi royal family and other investors such as KSB Capital Group, which is also acting as the financial adviser for the listing along with state-run National Commercial Bank (NCB).
Ibrahim al-Alwan, a senior KSB executive, said KSB's stake would fall to 6 per cent from 12 per cent after the IPO.
'The remainder of the proceeds will repay a bridge loan that was taken to fund the capital expenditure and start works on the plant so that production does not get delayed. The production started around the month of May,' Alwan told Reuters.
The listing prospectus showed Al Jouf will use SR171.5 million of the proceeds to repay debt and SR100 million to repay unspecified general costs.
In 2009, the firm obtained a 220 million riyal Islamic loan from NCB to mainly fund its working capital and signed this year an agreement with state-owned Saudi Industrial Development Fund for a financing worth up to SR483.5 million to be repaid over 14 instalments in eight years, it said in the prospectus.
Al Jouf has a production capacity of 1.75 million tonnes per year -- or 5,000 tonnes per day -- and would compete with Tabuk Cement and new entrant Northern Region Cement Co, Alwan said.
'Al Jouf Cement will tap demand from regional markets, such as Iraq which is undergoing a huge reconstruction effort. It has already obtained cement exportation licences,' he said. – TradeArabia News Service
More Industry, Logistics & Shipping Stories
- DNV to re-certifiy Drydocks World services
- Amphibious boats make global debut in Dubai
- Qatar sets up mixed business incubator
- Non-oil sectors ‘biggest contributors to UAE economy’
- Alba educates customers on best practices
- Spinneys to set up distribution centre at Kizad
- Maritime courses draw more trainees
- Dow to showcase at Dubai coatings expo
- UAE aluminium sector backs Syria refugees
- Asry in big vessel repair milestone
- Flare, Jordan form parent company ‘Aereon’
- Drydocks delivers second MCV for US
- ASIS launches amphibious leisure boat
- Taskforce sought to develop Saudi downstream sector
- DP World launches $200m India project
- RAK 'exploring' ceramics unit stake sale
- Mideast carriers top global air freight growth
- DMCA launches maritime solution apps
- Saudi plans oil-to-chemicals plant at Yanbu
- Sabic gets four bids for JV with Mitsubishi Rayon
- Pentair, IDC launch industrial services JV
- Major maritime conference to be held in Dubai
- GPIC wins key IFA certification
- Gulf rules must aid e-commerce: Aramex
- Gulftainer expands 2013 ops by 50pc
- DMCA to take part in Dubai boat show
- Al Namal to launch eco-friendly chillers
- Abu Dhabi city ports to receive facelift
- Kuwait Styrene posts $180m net profit
- Drydocks set for key energy event