The IPO will be one of the largest ever in the kingdom, in the range of SR 1,900 million ($507 million) divided into 35 million shares. It is understood that other potential private sector share offerings in the pipeline have been pushed back to make way for the YanSab sale. The share prospectus is being drawn up and will then be submitted to the Capital Market Authority for approval.

Preparations are simultaneously under way for the debt financing on the YanSab project, which entails the construction of an olefins complex at Yanbu. The sponsors are talking to export credit agencies and a teaser was sent to banks in July to gauge interest in participating in a debt package of about $3,500 million. ABN Amroand Saudi Hollandi Bankare the financial advisers (MEED 22:7:05).

The YanSab IPO is expected to be followed by the sale of 30 per cent of shares in Aldrees Petroleum & Transport Services Company, being arranged by HSBCand local affiliate Saudi British Bank. Red Sea Housing Services Companyis also planning an IPO during the first half of 2006 and in late November appointed Saudi Hollandi Bankas lead manager. Saudi Arabian Mining Company (Maaden), which has long been planning an IPO, recently announced that the offering would take place before the end of 2006. However, analysts are sceptical that the restructuring of the company in preparation for the IPO will be completed in such a tight timeframe.

Other companies due to stage IPOs during 2006 include food company Halwani Brothers, poultry firm Al-Akhawain, Kayan Petrochemical Company– the project company for the Jubail petrochemicals complex planned by the local Project Management & Development CompanyAjlan Abdulaziz al-Ajlan & Brothers, Saudi Research & Marketing Companyand Al-Obeikan Industrial Investment Group(MEED 26:8:05).

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