SAUDI ARABIA. Fawaz Abdulaziz Alhokair & Company this week unveiled its prospectus in advance of the initial public offering (IPO) to raise SAR1.32 billion (US$ 352 million).

The proceeds of the IPO will be used for both Saudi and regional business expansion. The share capital of Fawaz Abdulaziz Alhokair & Company is SAR400 million (US$106.7 million) consisting of 40 million fully paid ordinary shares with a nominal value of SAR10 (US$2.66) each with a premium of SAR 100 per share. The company will be offering 30% of its share capital - 12 million ordinary shares - through the IPO.

The IPO will be open for subscription for ten days from Saturday 7 October to Monday 16 October 2006. The minimum number of shares that an individual investor can subscribe is ten shares and a maximum of 25,000 shares.

Dr Abdulmajeed Alhokair, Chief Executive Officer, Fawaz Abdulaziz Alhokair & Company said: "We are confident that Saudis would like to be part of our growing and profitable company. Fawaz Abdulaziz Alhokair & Company shares will add diversity to any investor's portfolio."

"Fashion retailing is growing at more than 20% per anum and has the potential to continue to show robust growth in the future. We welcome all our Saudi brothers and sisters to invest in Fawaz Abdulaziz Alhokair & Company and the message is: come join us, have a slice of future prosperity and be involved in the growth of a business that is part of everyday life in the Kingdom," he added.

For the fiscal year ended March 2006, Fawaz Abdulaziz Alhokair & Company had sales of SAR1.3 billion (US$347 million), showing growth of 30% as compared to 2004-2005, with net income increasing by 41% to SAR246 million.

Fawaz Abdulaziz Alhokair & Company sold more than 15 million items in 2005-2006 and served more than 12 million customers. As of March 2006, the company had 617 stores and 42 international brands in its portfolio.

The international brands in its portfolio include Zara, Massimo Dutti, Promod, Adams, Aldo and Monsoon. It has a strong product offering across all major segments like womenswear, menswear, kids & teens fashion, footwear and accessories to name a few.

HSBC is the Financial Adviser and Lead Manager for the offering and the Saudi British Bank is the sole underwriter, while Deloitte & Touche Bakr Abulkhair & Co are the registered auditors. The legal adviser to the transaction is the Law Office of Mohammed Al-Sheikh.

Ioannis Karapatakis, Managing Director, Global Investment Banking Advisory of HSBC Saudi Arabia, said: "Fawaz Abdulaziz Alhokair & Company's prospectus is a comprehensive document that contains all the relevant information from past performance to management structure to operational overview. The abridged version of the prospectus will be publicised in newspapers for the valued investors. This IPO is indeed another milestone for HSBC and SABB and we are very pleased and honoured to be its advisors."

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