[2008-04-08]  Alinma IPO Gets Positive Response
The opening of the Initial Public Offering (IPO) of Alinma Bank, the largest IPO launched in the Saudi market, met with a positive response with investors on the first day. Abdulmuhsin Al-Faris, Alinma Bank’s chief executive officer, said, “Samba Capital and Alinma are still collecting information, especially from all receiving banks, but the trend on the basis of the preliminary information looks very positive. Set to close on April 16, 2008 with price set on SR10 per share without issuance fees, the IPO will raise SR10.5 billon from the investor community. We will be releasing detailed and transparent information, probably on Wednesday and this has been agreed by Samba and Alinma Bank.”

He went on to point out that subscribers were seeking to invest significantly more than the minimum subscription of 50 shares in the bank, which will be a leading Shariah-compliant Islamic bank with a capital of SR15 billion. The bank chose Samba Capital as the IPO manager because it has experience in managing IPOs in the Saudi stock market.

Speaking on the initial response to the IPO, Samer Al-Rayyan, investment chief at Saudi Investment Bank, said, “Normally the rush for shares takes place during the last days of IPO, and so it is difficult to say anything now. Samba can probably disclose the details, especially the statistics with regards to subscribers, as all banks are using Samba system.

Alinma Bank officials, who will make their first tally of subscribers later tonight or on Wednesday, say that the big buy on the opening day gives confidence that the offer will be a success. This is the largest IPO announced for Saudi citizens in the local market with an offer of one billion and fifty million shares.

According to a report, the announcement of 70 percent of the bank’s shares for IPO reflects the aspirations of the leadership in broadening the contribution base for citizens. The remaining 30 percent of the bank’s capital or SR4.5 billion, has been paid in full and is owned equally by the Public Investment Fund, the General Retirement Organization and the General Organization for Social Insurance (GOSI).

Riyad Bank to Raise $3.5bn
The Saudi bourse regulator approved on Monday a plan by Riyad Bank to raise 13.13 billion riyals ($3.5 billion) through a rights issue which will increase its capital by 140 percent and beef up reserves.

The Capital Markets Authority said in a statement it approved the plan by Saudi Arabia’s fourth-largest lender by market value to issue 875 million new shares at 10 riyals and a 5 riyal premium.



Source: Copyright © 2001 - 2008, K. Zughaibi & B. Kabbani General Partnership.