King Abdullah City IPO 'likely next month'
from
Trade Arabia
Sunday, May 28, 2006
The King Abdullah Economic City, a new development coming up near Jeddah, is planning to launch its initial public offering (IPO) next month, according to a report.
The Saudi Capital Market Authority and banking sources have made no announcements regarding the date of the IPO, said the Gulf News report. The size of the IPO has not been made known.
However, it has been decided that 30 per cent of the equity of the company will be offered in the IPO and that it would be open for subscriptions for two weeks, said the report.
The cost of each share will be 10 riyals ($2.70) and the minimum number of shares to be purchased will be 50.
The city will be built at a pristine location on the Red Sea coast north of Jeddah with an investment of 100 billion riyals ($26.6 billion).
The Dubai-based Emaar Properties is the master developer of the giant project.
The City will be a mixed-use development located north of the commercial hub of Jeddah to ensure easy access from the Holy Cities of Makkah and Madina. A massive 55 million square metres of greenfield land with a 35 km shoreline close to the industrial city of Rabegh has been earmarked for the master development.
The City will have six distinct components – a modern world-class Seaport, Industrial District, Financial Island, Education Zone, Resorts and The Residential Area. Completion of the overall project will be done in stages with the first batch of businesses and residents moving into the City in a period of 24 to 36 months.
Threaded Mode