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Saudi fashion retailer Al Hokair launches IPO prospectus
Source: BI-ME , Author: Trevor Lloyd-Jones
Posted: Tue September 26, 2006 12:00 am
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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."

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: August 4, 2015
UAE. July data suggested that the UAE's non-oil private sector regained some of the growth momentum that was lost at the end of the second quarter; Output and new orders both rose at sharper rates, contributing to a robust overall improvement in business conditions.
date:Posted: August 4, 2015
EGYPT. Latest data painted a bleak picture; Business conditions worsened amid declines in output, new orders and employment, although the respective rates of contraction were only slight.
date:Posted: August 4, 2015
SAUDI ARABIA. Stronger growth of the sector as a whole was mainly driven by sharper expansions in both output and new orders, while purchasing activity also rose more quickly; However, data for employment bucked the general trend, as the rate of hiring eased to a 14-month low.
SAUDI ARABIA. Office and residential sectors are positioned for further rental growth during remainder of 2015; Hotel and retail sectors appear closer to the peak; Residential market remains mixed, with apartments seeing continued rental growth while villa rents have declined.
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