HSBC Saudi Arabia Limited today said that the initial public offering (IPO) of Fawaz Abdulaziz Alhokair & Company which opened on Saturday October 7, 2006 will close on Monday October 16, 2006.
As at the end of the eighth day of subscription, SR 1,470,506,400 was collected, thereby representing 111% coverage. 75.5% of the proceeds injected have come through direct channels including ATMs, phone banking and internet banking.
Dr. Abdulmajeed Alhokair, Chief Executive Officer, Fawaz Abdulaziz Alhokair & Company said: “The Saudi investors have clearly shown their confidence in Fawaz Abdulaziz Alhokair & Company. Their overwhelming response is a manifestation of the trust that the Company enjoys in the market place. On behalf of the Company I would like to once again say ‘Thank you’ to investors.”
Ioannis Karapatakis, Managing Director Global Investment Banking Advisory of HSBC Saudi Arabia Limited said: “The response to Fawaz Abdulaziz Alhokair & Company IPO has been fantastic. It also proves that companies with sound fundamentals will always enjoy the confidence of investors. Investors continue to see value in Fawaz Abdulaziz Alhokair & Company’s potential growth, quality of management and operational excellence.”
SABB is the sole underwriter of the IPO and also a selling agent. The other banks that are involved in selling the issue are: Samba Financial Group, Al Rajhi Banking & Investment Corporation, National Commercial Bank, Arab National Bank, The Saudi Investment Bank, Riyad Bank, Banque Saudi Fransi, Bank Al Bilad, Bank Al Jazira and Saudi Hollandi Bank.
HSBC Saudi Arabia Limited is the Financial Adviser and Lead Manager, SABB is the sole underwriter of the IPO, while Deloitte & Touche Bakr Abulkhair & Co are the registered auditors. The legal adviser to the transaction is the Law Office of Mohammed Al-Sheikh.
The Company is offering 30% of its share capital – 12 million ordinary shares – through the IPO. The IPO is open for subscription for 10 days from Saturday October 7th to Monday October 16th, 2006. The minimum number of shares that an individual investor can subscribe is 10 shares and a maximum of 25000 shares.
For the fiscal year ended March 2006, Fawaz Abdulaziz Alhokair & Company had sales of SR1.3 billion, showing growth of 30% as compared to 2004/05. For the six months ended 30th September 2006 the Company reported sales turnover of SR 703 million, registering a growth of 20% when compared to the same period of last year.
A group of Muslim scholars joined revered Prof. Shaikh Abdulla Al Mutlaq, member of the supreme committee of Islamic scholars in KSA, in issuing a FATWA and sanctioning the IPO and trading of Fawaz Abdulaziz Alhokair & Company shares in the market. Prof. Al Mutlaq had asserted that all operations of the Company are Shariah compliant.
Shaik Mohammed Alqerri, Shaikh Khalid Aldaeiji, Prof. Shaikh Mohammed Aloussaimi, Prof. Shaikh Yousef Alshubeili, Prof Shaikh Abdulaziz bin fawzan AlFawzan have joined Prof Mutlaq in proclaiming Fawaz Abdulaziz Alhokair & Company ‘Naqia”.
About Fawaz Abdulaziz Alhokair & Company
Fawaz Abdulaziz Alhokair & Company is one of the fastest growing and dynamic enterprises in the Kingdom of Saudi Arabia employing more than 2500 people. It has a reputation built on innovation and successful fashion retail franchising and trades over 42 brands through a network of 617 stores. In 2005/06 the Company had a turnover of SAR 1.293 billion, served more than 12 million customers and sold over 15 million items. The Company has built its success on forging alliances with the world’s most successful fashion retail brands including: Zara, Massimo Dutti, La Senza, Aldo, Nine West, Promod and Wallis. Its fresh approach to retailing is meeting the needs of a fast-growing and increasingly cosmopolitan Saudi population. The Company’s unique ability to spot trends and identify international brands that appeal most to Saudi consumers has resulted in the perfect meeting of demand and supply.