United Electronics Company to go public

30 October 2011

HSBC appointed as financial adviser for initial public offering

Saudi Arabia-based consumer electronics retailer United Electronics Company (Extra) is to launch an initial public offering (IPO) on the Saudi Arabian Stock Exchange (Tadawul), the country’s stock exchange on 5 December.

The company will offer 7.2 million shares, representing 30 per cent of the company’s share capital. It received approval from the Saudi Capital Market Authority on 30 October.

The IPO will open once the book-building process is completed and will close on 11 December. It will be open to all Saudi Arabian nationals.

The UK’s HSBC has been appointed as financial adviser, lead manager and lead underwriter for the IPO, with Lebanon’s Blominvest appointed as co-underwriter.

Extra is the largest consumer electronics retailer in Saudi Arabia with an annual turnover of SR2bn ($533m).

“Today’s announcement represents a major milestone in the going development of Extra … we are grateful to the Capital Market Authority for approving our application, which will enable the wider public to participate directly in our ongoing success,” says Abdullah al-Fozan, chairman at United Electronics Company.

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