Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi Arabia- Alinma opens IPO for Al-Jouf cement  Join our daily free Newsletter

MENAFN - Arab News - 19/07/2010

No. of Ratings : 2
Add to Mixx!


(MENAFN - Arab News) For the first time since its inception mid 2009, Alinma Bank is to participate as a receiving bank for a maiden Initial Public Offering (IPO), the bank announced here on Sunday.

We will take part in the upcoming Al-Jouf Cement Company IPO, which is scheduled to open on Monday, July 19, 2010 and will extend through the close of business on Sunday, July 25, 2010, a senior official from the bank told Arab News Sunday. This marks the first time Alinma Bank will function as an IPO receiving bank, he added.

Al-Jouf will offer sixty-five million (65,000,000) shares for public subscription, representing 50 percent of the companys shares for ten riyals per share.

Prospective clients may complete the subscription process via Alinma Internet (www.alinma.com) or by visiting a branch and presenting proper personal identity and family documentation.

Subscription is limited to Saudi nationals, including divorced or widowed Saudi women with children from marriages to non-Saudi men. Women in such circumstances may subscribe under their names. The per subscriber maximum and minimum subscription limits are 500,000 shares and 50 shares, respectively.

Al-Jouf Cement Co. plans to raise SR650 million (173.3 million) by selling new and existing shares to the public, with over half of the proceeds going to the founders of the firm which started operations in May.

Over the July 19-25 period, Al-Jouf will offer Saudi investors 27.9 million new shares and 37.1 million existing shares at SR10 each to raise the total number of its shares to 130 million, the listing prospectus showed.

Al-Jouf has a production capacity of 1.75 million tons per year " or 5,000 tons per day " and would compete with Tabuk Cement and new entrant Northern Region Cement Co. Al-Jouf Cement is expected to harness demand from regional markets, such as Iraq which is undergoing a huge reconstruction effort. It has already obtained cement exportation licenses.

The listing prospectus showed Al-Jouf will use SR171.5 million of the proceeds to repay debt and SR100 million to repay unspecified general costs.

In 2009, the firm obtained a SR220 million Islamic loan from NCB to mainly fund its working capital and signed this year an agreement with state-owned Saudi Industrial Development Fund for a financing worth up to SR483.5 million to be repaid over 14 installments in eight years, it said in the prospectus.

Alinma Bank has a network of 26 branches and 11 of them are for women customers. It serves the customers throughout day and night with its 146 ATM machines located in all parts of the Kingdom.

By Mohammed Rasooldeen


  MENA News Headlines




Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help