DIFX welcomes Kingdom Hotel Investments as Exchange’s first Listing of Ordinary Shares

Published March 1st, 2006 - 11:58 GMT

Shares in Kingdom Hotel Investments (KHI) list today on the Dubai International Financial Exchange (DIFX) following an initial public offering that raised US$397m. The IPO was oversubscribed by 14 times. The shares will begin trading at US $9.25.

Henry Azzam, Chairman of the DIFX, said: “This primary listing is an enormously significant milestone in the development of the exchange as a listing forum of international stature. It is the first ordinary share listing on the DIFX by any company. In addition the issuer is a very prominent and high profile firm.”

“We expect this to be followed by many other significant equity listings. This will enable the DIFX to develop a thriving level of trading in a wide range of securities.”

The flotation is the first by a company controlled by HRH Prince Al Waleed Bin Talal. KHI is a major hotel and resort acquisition and development company in the Middle East and Africa, headquartered in the Dubai International Financial Centre. It has said it intends to use the net proceeds from the offering to finance the expansion of its portfolio of hotel investments through acquisitions and new developments and for other general corporate purposes.

KHI is also issuing global depositary shares on the London Stock Exchange in a secondary listing.

Sarmad Zok, Chief Executive of KHI commented: “The decision to list the shares on the DIFX reflects the company's wish to maximise regional participation in its initial public offering.

“The DIFX is committed to international best practice in terms of regulation, and is set up to allow unrestricted and easy access for local and international investors.”

Nasser Alshaali, Chief Operating Officer of the DIFX, said: “KHI is the latest of a series of prominent companies to list products on the DIFX. We are delighted that it has chosen this exchange as its main listing venue. This is further evidence that the DIFX is succeeding in establishing itself as the leading exchange its region.”

 

DIFX
The DIFX aims to become the main exchange in its region for equities, bonds, Islamic products, funds, index products and derivatives. The target areas of the DIFX for seeking issuers include the Middle East and North Africa, as well as South Africa, Turkey and the Indian sub-continent. The DIFX is regulated by the Dubai Financial Services Authority. www.difx.ae

Kingdom Hotel Investments
KHI, headquartered in Dubai, UAE, is a leading hotel and resort acquisition and development company in the Middle East and Africa, operating in the first class and luxury market segments.

The Company has ownership interests in 26 properties in 13 countries, of which 15 are operating hotels (3,262 rooms), including several distinctive luxury properties and 11 hotels and resorts currently under construction, or in the initial stages of development.  KHI’s operating hotels are located in eight different countries, while its hotels under construction or development projects are located in nine different countries.

Four Seasons, Fairmont and Mövenpick manage the operating hotels in KHI’s portfolio. Examples include the Mövenpick Hotel and Resort Beirut, the Four Seasons Nile Plaza and the Norfolk (operated by Fairmont) in Kenya.  KHI also has a 25% interest in the Four Seasons George V hotel in Paris.

KHI was established in May 2000, under the name Middle East Hotels Company.  The Company’s name was changed to Kingdom Hotel Investments in August 2004.

Kingdom Holding Company (“KHC”) is different to KHI.  KHC is one of Saudi Arabia’s largest companies and is a general holding company for many of HRH Prince Alwaleed’s investments worldwide.

Kingdom Hotels International and KHI are separate companies; however, Kingdom Hotels International is also owned by the Kingdom Trust, a trust for the benefit of HRH Prince Alwaleed and his family, and the same trust that is the owner of KHI’s majority shareholder.

 

 

 

 

 


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