Business | Property
Emaar IPO in Saudi Arabia oversubscribed
The ten-day initial public offering (IPO) of Emaar the Economic City (EEC), which opened on July 22, has been oversubscribed in just three days.
- Staff Report
- Published: 00:00 July 27, 2006
Dubai: The ten-day initial public offering (IPO) of Emaar the Economic City (EEC), which opened on July 22, has been oversubscribed in just three days.
On the end of the fourth day of subscription, 1,216,004 applications were received from 4,570,080 subscribers, with the amount subscribed crossing 3,534,644,500 Saudi riyals.
EEC is a consortium headed by Emaar Properties PJSC and a number of investors from Saudi Arabia.
"We thank the Saudi investors for their confidence in Emaar the Economic City," said Mohammad Ali Al Abbar, Chairman, EEC.
"Their overwhelming response to the IPO is an indication of their trust in the King Abdullah Economic City (KAEC) project. The 100 billion-riyal project will usher in a new era of economic prosperity to the kingdom."
"We thank the Capital Market Authority (CMA) of Saudi Arabia and the Saudi investors for reposing their confidence in us," said Nidal Jamjoom, Chief Executive Officer, EEC.
"The huge turnout to the IPO highlights investor interest in KAEC, which will work in tandem with the kingdom's on-going drive to expand the economy, create employment opportunities for its youth and function as a catalyst to attract foreign investment."
Ioannis Karapatakis, HSBC Managing Director, Global Investment Banking Advisory, added: "The EEC IPO is the first greenfield IPO fully underwritten in Saudi Arabia. The overwhelming response to the IPO is a cause for celebration for the entire market, and proves that companies with sound fundamentals will continue to enjoy the confidence of investors."
EEC is offering 30 per cent of its equity 255 million shares at a nominal face value of 10 riyals to raise a total of 2.55 billion riyals.
IPO shares have a minimum subscription level of 50 shares and a maximum subscription level of 25,000 shares of 10 riyals each. The IPO will close on August 2.
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