The IPO of Etihad Atheeb Telecommunication Co. (Atheeb), one of the three new fixed-line licensees in Saudi Arabia, has been oversubscribed by 200 per cent.
Shareholders Batelco and private Saudi investors intended to raise SR300 million (US$80 million) in the IPO which closed yesterday, through the offer of 30 per cent of the company’s capital, equating to 30 million shares at SR10 each.
Financial advisor, lead manager and underwriter for Atheeb’s IPO process, Saudi Hollandi Capital Co, stated that at the eight receiving banks in Saudi Arabia had received 60.133 million share subscriptions from more than 774,000 subscribers, as of February 1.
Following the IPO Batelco will retain a 15 per cent stake in Atheeb, with the remaining shareholding divided amongst Atheeb Group, Nahla Company and GOSI (General Organisation of Social Insurance).
Atheeb’s IPO is the kingdom’s first since August 2008, following the country’s Capital Markets Authority reportedly placed IPOs on hold until investor confidence improves. The local bourse has lost 45 per cent of its value during the past four months.
When Atheeb launching commercial services later this year it will compete with incumbent STC and the two other licencees – Optical Communications spearheaded by the US’s Verizon, and Al-Mutakamilah Company led by Hong Kong’s PCCW.
STC has approximately 4.5 million fixed-line subscribers and 1.3 million Internet users, representing penetration rates of 18.75 per cent and 5.4 per cent respectively.
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