With Etihad Etisalat’s IPO successfully completed, in which 4,276,827 subscribers applied, the process of share allocation and the return of the surplus capital was completed Friday.
With a total of 20 million shares that were offered by Etihad Etisalat during the IPO, for a nominal value of 1 billion Saudi Riyals, the total value of the subscription stood at more than 51 billion Saudi Riyals thus making it the largest IPO to date in Saudi Arabia.
Sources at Etihad Etisalat and SAMBA Financial Group, the lead manager explained that the process of share allocation will be according to the guidelines approved by the Capital Markets Authority (CMA); as follows -
• The average allocation is 4.68 shares per person
• If an IPO form contains one or two applicants then each person will receive five shares each.
• Should an IPO form contain three subscribers or more, then the number of subscribers will be multiplied by 4.8 shares per person, and allocation will be rounded down.
Mr. Khalid Al Kaf, Etihad Etisalat Managing Director expressed his "immense happiness at the unprecedented successful of the IPO, and also lauded the efforts of all those who made this IPO a success.”
He further added that the IPO secured the one billion Saudi Riyals that Etihad Etisalat sought from this IPO and the rest of the capital will be deposited in the banks where the subscription took place. With regards to the subscribers receiving a certificate for their purchased shares, Mr. Al Kaf said, “A letter will be sent to each subscriber informing them that the shares that they purchased will be registered in their investment portfolio”.
It may be noted that Etihad Etisalat received 1,068,103 IPO applications at more than 1200 branches of all the Saudi Banks that participated and the number of shares that were applied for stood at 1,020,884,350 shares during the 10 day IPO which began on October 16, 2004 corresponding to Ramadan 2, 1425. (menareport.com)
