In an initiative that rarely takes place in Saudi markets, a group of Muslim scholars joined revered Prof. Shaikh Abdulla Al Mutlaq, member of the supreme committee of Islamic scholars in KSA, in 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.
He is now joined by Shaik Mohammed Alqerri, Shaikh khalid Aldaeiji, Prof. Shaikh Mohammed Aloussaimi, Prof. Shaikh Yousef Alshubeili, Prof Shaikh Abdulaziz bin fawzan AlFawzan in proclaiming Fawaz Abdulaziz Alhokair & Company ‘Naqia”.
Mr. Mutlaq clearly stated that the Company’s activities are shariah compliant and that it holds no liabilities or investments that contradict with Shariah rules and regulations. Therefore the Company is considered “Naqia”, and that buying and selling of its shares is “Halal”.
Revered Mohammed Alqerri, stated that he has reviewed the Company’s financial accounts and the prospectus offering 30% of the Company’s shares for public, and after research about the Company’s financial activities he came to the conclusion that it complies with all accepted standards for Islamic investment, and that there’s nothing wrong in dealing with its shares.
On his part, Shaikh khalid Aldaeiji asserted that the Company doesn’t have any financial activities that contradict with Shariah rules and regulations and that it only deals with “Halal” activities.
All the above-mentioned Scholars agreed that since the Company has no liabilities or investments that contradict with Shariah and since the Company has been running business for years now, it is “Halal” to participate in the IPO and trade shares after allocation.
“The unanimous agreement of Islamic Scholars that the Company is “Naqia” and it is ‘Halal’ to trade its shares comes as a result of our following the strict standards of Shariah in all our operations,” said Dr. Abdulmajeed Alhokair, CEO of Fawaz Abdulaziz Alhokair & Company. He added that the internal audit directorate of the Company, an independent unit reporting to the administration, works to ensure this compliance.
Fawaz Abdulaziz Alhokair & Company has launched its initial public offering (IPO) to raise SR1.32 billion (US$ 352 million).
The proceeds of the IPO will go to the founding shareholders on a pro-rata basis. The share capital of Fawaz Abdulaziz Alhokair & Company is SR400 million (US$106.7 million) consisting of 40 million fully paid ordinary shares with a nominal value of SR10 (US$2.66). The Company will be offering 30% of its share capital – 12 million ordinary shares – through the IPO.
The IPO is currently open and will close on 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, with net income increasing by 41% to SR246 million. The Company recorded SR 703 million slaes during the half yearly results (till 30 sep 2006).
Fawaz Abdulaziz Alhokair & Company sold more than 15 million items in 2005/06 and served more than 12 million customers. As of March 2006, the Company had 617 stores and 42 international brands in its portfolio.
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.
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