Mohammad Al-Mojil Group IPO to open on May 3, offering 30 million shares
HSBC appointed Financial Advisor and Lead Manager for IPO
Mohammad Al-Mojil Group (MMG), Saudi Arabia’s premier industrial construction and construction services company, announced today that the Saudi Capital Market Authority (CMA) has approved the company’s application to hold an Initial Public Offering (IPO). The offering consists of 30 million shares, representing 30 per cent of the company’s share capital. The IPO will open for retail subscription on May 3, 2008, and close on May 12, 2008.
HSBC Saudi Arabia Limited has been appointed the Financial Advisor and Lead Manager for the IPO.
According to the announcement, a portion of the offering will be offered to selected institutional investors.
Established more than 50 years ago, MMG has grown to become one of Saudi Arabia’s largest industrial construction companies, with 24,000 employees working on significant projects across the Kingdom. With a track record of delivering results on time, on budget and to the exact specifications of its clients, MMG is the construction and construction services provider of choice for many of the Kingdom’s largest companies, including Saudi Aramco, the world’s leading producer of energy. To date, MMG has completed projects worth more than SAR 37.5 billion.
Commenting on the announcement, Fahad Al-Raqtan, Managing Director of MMG, said, “This IPO announcement is a significant step for the company and will allow the Saudi public to participate in the success of the company. Last year our revenues approached SAR 2 billion, while our net profit has grown at an average annual rate of 95 per cent in the last three years.”
He added, “These results were due to MMG’s continued efforts to develop its projects and strengthen its position as a contractor specialized in industrial construction in key sectors of the economy such as oil, gas, petrochemicals and water desalination.”
Timothy Gray, Chief Executive Officer of HSBC Saudi Arabia Limited, confirmed that the preparation work for MMG’s IPO is proceeding smoothly. “The share price will be determined based on the institutional bookbuilding process and will be announced soon afterwards,” he said.
Osama As’ad, Director of Investment Banking at HSBC Saudi Arabia Limited, added, “This IPO represents significant quality in the initial public offerings in the Saudi stock market as MMG will be the first specialized industrial construction company to make an initial public offering in the Kingdom. MMG is a leader in a sector that has been witnessing escalating demand for specialized construction companies capable of executing projects of building and maintaining onshore and offshore oil & gas and petrochemical facilities in the Kingdom.”
According to the CMA announcement, the offering prospectus will be made available to the public within a sufficient period prior to the start of the IPO.
