The Fawaz A. Alhokair Group welcomes CMA IPO decision

Published July 23rd, 2006 - 07:26 GMT

The Fawaz A. Alhokair Group has welcomed the decision by the Capital Markets Authority (CMA) to approve an Initial Public Offering for Fawaz Abdulaziz Alhokair and Company. 


The Company currently manages over 40 international fashion retail brands across a network of more than 600 stores in the Kingdom.  The Company is the legal vehicle for the fashion retail business of Fawaz A. Alhokair Group, which also has multiple diversified interests in food retailing, real estate and construction, amongst others.


The share capital of Fawaz Abdulaziz Alhokair and Company is SR400 million (US$104 million) consisting of 40 million fully paid ordinary shares with a nominal value of SR10 (US$2.66) each.  Alhokair will be offering 30% of its share capital – 12 million ordinary shares – through the IPO.


The IPO will be open for subscription for 10 days from October 7th to October 16th, 2006.  The share allocation has been determined at a minimum of 25 shares and a maximum of 25,000 shares.


Mr. Fawaz A. Alhokair, Group Chairman, said the CMA’s decision is an important milestone that will support the development of the Saudi stock market and strengthen the commercial institutions in the country.


“We are very grateful to the CMA for its decision to approve this IPO.  It comes at a time when our fashion retail business is developing rapidly and gaining in strength.  We believe an IPO is a natural evolution and is a way for investors to be involved in the growth of a business that is part of everyday life in the Kingdom.”


HSBC and Saudi British Bank (SABB) are the financial advisers, lead manager and underwriter of the IPO, while Deloitte & Touche Bakr Abulkhair & Co are the registered auditors and reporting accountants.  The legal adviser to the transaction is the Law Office of Mohammed Al-Sheikh.


Ioannis Karapatakis, Managing Director Global Investment Banking Advisory of HSBC Saudi Arabia Limited said: “Fawaz A. Alhokair and Company’s performance is impressive.  This IPO is indeed another milestone for HSBC and SABB and we are very pleased and honored to be its advisors.”


For the fiscal year ended March 2006, Fawaz Abdulaziz Alhokair  and Company had sales of SR1.3 billion, showing growth of 30% on 2004-05, with net income increasing by 41% to SR246 million.


The stores of Fawaz Abdulaziz Alhokair and Company sold more than 15 million items in 2005/06 and served more than 12 million customers.  In the twelve months leading to April 2006 it opened 175 new stores and is on target to open a further 150 before April 2007. 


Its international brands are some of the world’s most famous and recognisable including: Zara, Massimo Dutti, Promod, Adams, Nine West, Aldo and Monsoon.  It has a strong product offering across all major fashion retail and clothing segments including, womenswear, menswear, kids and teen fashion, footwear and accessories.


The role of Fawaz A. Alhokair Group in Saudi Arabian industry was recognized earlier this year by the OECD, which awarded the company the “2005 Investor of the Year” award for its outstanding contribution to job creation.  In 2005, the Group companies generated close to 4,000 jobs.

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