Business | Investment
Samba to lead manage Middle East's biggest mining IPO
Maaden to offer Saudi institutional and retail investors 50% of firm's stake by selling 462.5m shares next month
- Reuters
- Published: 23:41 June 29, 2008
Riyadh: Saudi Arabian Mining Co. (Maaden) has appointed a subsidiary of Samba Financial Group to lead manage its 9.25 billion riyal ($2.47 billion) share sale next month.
Maaden, which will sell 462.5 million shares in the initial public offering (IPO), has appointed Samba Capital as lead manager and underwriter for the sale, according to a statement from the company. The IPO is scheduled for July 5 to July 14.
The IPO, which be the Middle East's largest offering in a mining company, will offer Saudi institutional and retail investors 50 per cent of Maaden's capital at 20 riyals per share.
Maaden estimates its total investments at 60 billion riyals, including phosphate, bauxite, gold and industrial minerals.
Maaden said this month it had secured loans worth several billion dollars from Saudi and Korean institutions for its phosphate project in cooperation with Saudi Basic Industries Corp (Sabic). The IPO is to cover some of the costs.
Maaden said last year the bill for the phosphate venture had soared to 21 billion riyals, 62 per cent more than it had expected, due to a rise in labour and material costs.
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