Al-Babtain Power & Telecommunication Company today shared details of its upcoming initial public offering (IPO) scheduled immediately after the Eid holidays (4 November until 13 November, 2006). The prospectus is also available on www.al-babtain.com.sa or www.sabb.com or www.cma.org.sa
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.
The issued share capital of Al-Babtain Power & Telecommunication Company is SAR 270 million (US$72 million) consisting of 27 million shares. The IPO comprises 8.1 million shares – representing 30% of its share capital.
The IPO will be open for subscription for 10 days from Saturday, November 4th to Monday, November 13th, 2006. Each share is priced at SAR 40 per share. The minimum number of shares that an individual investor can subscribe is 10 shares and the maximum is 25,000 shares.
Mr. Mohammad Al-Babtain, Chairman, Al-Babtain Power & Telecommunication Company said: “We are grateful to the CMA for approving our IPO. Al-Babtain’s strategic objective is to be one of the leading companies in power and telecommunications in the MENA Region, satisfying its customers. Al Babtain is well established company since 1955 and enjoys very good reputation in the Saudi Market as well as MENA Region. The IPO is happening at a very opportune time, when our business is developing rapidly and gaining in strength. The IPO is a way for Saudi investors to be personally involved in the growth of a business that is literally helping to create an even brighter future for the Kingdom.”
HSBC has been appointed as the financial adviser and lead manager for the IPO, while Saudi British Bank (SABB) is the sole underwriter. Ioannis Karapatakis, Managing Director, Global Investment Banking Advisory of HSBC Saudi Arabia Limited, said: “The performance of Al-Babtain is extremely impressive, and the company is operating in a sector where there are clearly enormous opportunities for growth. This IPO is indeed another milestone for HSBC. We are honored to serve as the lead and sole adviser.”
For the fiscal year ended December 31, 2005, Al-Babtain Power & Telecommunication Company had sales of SAR 543.2 million (US$ 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).
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