Batelco’s Atheeb to commence IPO in Saudi Arabia tomorrow

Etihad Atheeb Telecommunications Co (Atheeb), one of three new companies to have acquired fixed-line licences in Saudi Arabia last year, intends to raise SR300 million (US$80 million) through an initial public offering scheduled to commence tomorrow.

Atheeb will compete with incumbent STC and newcomers Optical Communications and Al-Mutakamilah to provide fixed-line and Internet services, with penetration rates of 18.75 and 5.4 per cent respectively

Shareholders Batelco and private Saudi investors will offer 30 million shares, representing 30 per cent of Atheeb’s capital for SR10 each, until February 2.

Atheeb’s IPO will be Saudi Arabia’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.

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).

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.