NCB will advise Sadafco on its public offering and lead manage the transaction, which is expected to take place in the first half of 2005. Sadafco, founded in 1991 and the kingdom’s second largest dairy producer after Almarai, has seven fully mechanised factories – five in Saudi Arabia and two in Egypt. The company’s paid-up capital is SR 325 million ($87 million).
The Sadafco offering will be preceded by the NCCI transaction, which is now set to be launched in late November/early December, with Almarai’s IPO following about four weeks later. Both transactions are being lead managed by HSBC
and Saudi British Bank
The next IPO in line will be for Al-Bilad
, a new Islamic bank formed from eight local foreign exchange houses. The transaction – to be arranged by Gulf International Bank
– is now scheduled for the first quarter of 2005. Other companies due to launch IPOs in 2005 include Jeddah-based National Commercial Bank
, Saudi Arabian Mining Company
and The Power & Water Utilities Company for Jubail & Yanbu (Marafiq)
Under the SR 1,000 million ($267 million) Ettihad Etisalat IPO, 20 million shares were offered for purchase over a 10-day period starting from 16 October. The transaction, which was lead managed by Samba Financial Group
, was significantly oversubscribed.