Al-Babtain Power & Telecommunication Company today announced the appointment of 11 local banks as co-managers for its SAR 324 million Initial Public Offering (IPO).
The Saudi British Bank (SABB) is the sole underwriter of the IPO and also a selling agent. The other banks that are involved in selling the issue are: Banque Saudi Fransi, The National Commercial Bank, Saudi Hollandi Bank, Bank Al Bilad, The Saudi Investment Bank, Bank Al Jazira, Arab National Bank, Riyad Bank, Samba Financial Group and Al Rajhi Banking & Investment Corporation. The connectivity between all these banks has already been tested including their branches.
HSBC has been appointed as the financial adviser and lead manager for the IPO, while SABB will serve as the sole underwriter. Deloitte & Touche Bakr Abulkhair & Co. and BDO Associated Accountants are the registered auditors and reporting accountants. The legal adviser to the transaction is the Law Office of Torki A. Al Shubaiki in association with Baker & McKenzie Limited.
The IPO will be open for subscription for 10 days from Saturday November 4th to Monday November 13th, 2006. The minimum number of shares that an individual investor can subscribe is 10 shares and a maximum of 25000 shares. The minimum subscription amount is SAR 400 and maximum subscription amount is SAR 1,000,000.
The share capital of -Babtain Power & Telecommunication Company is SAR 270 million (US$72 million) consisting of 27 million shares with a nominal value of SAR 10 each. The IPO comprises 8.1 million shares – representing 30% of its share capital. Each share is priced at SAR 40 per share.
Mr. Mohammad Al-Babtain, Chairman, Al-Babtain Power & Telecommunication Company said: “Factoring the anticipated demand from retail & high net worth individuals, we are pleased to announce that all 11 banks in the Kingdom will act as receiving banks to this offering. We present world-class bankers with local expertise to be our partners for this IPO. The seamless connectivity between these banks is another hallmark of cooperation.”
For the fiscal year ended December 31, 2005, Al-Babtain Power & Telecommunication Company had sales of SAR 543.2 million (US$ 144.9 million), showing growth of 31.2% on 2004, with net income increasing by 10% to SAR 65.8 million (US$ 17.5 million).
About Al-Babtain Power & Telecommunication Company:
An ISO:9000 Company, Al-Babtain operates in the high-growth power and telecom sectors. In the Power Sector, the Company designs, manufactures and supplies transmission towers & monopoles as well as distribution poles. The Company also caters to the outdoor lighting industry, manufacturing and supplying poles, high masts and luminaries that are used on roads and highways.
In the Telecom Sector, Al-Babtain does engineering, manufacturing & installation of communication towers (both Lattice Type & Monopole) catering to Fixed Line, GSM, Microwave, Roof Top Structures, Antenna Mounts etc. within the Kingdom, neighboring Arab countries and North African countries.
Al-Babtain also specializes in special projects for structural steel, catering to the Petrochemicals, Oil & Gas, Cement, Industrial and Commercial manufacturing sector, providing a total solution for engineering & manufacturing for varied applications.
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