Making a difference

Kingdom Holdings, which started trading on the Saudi Stock Exchange (Tadawul) in July, also picked up an award for the best initial public offering of the year in a ceremony which took place at a gala dinner during the recently concluded Saudi IPO Summit in Riyadh, sponsored by Samba.

The Saudi Public Company Awards are the most prestigious individual, business or organisational accolade that a Saudi Arabian publicly listed company can win with a judging panel made up of internationally respected professionals from a variety of sectors.

John Sandwick, Managing Director of Encore Management, Switzerland, a member of the judging panel and Chairman of the Saudi IPO Summit, said of the awards: "In looking back over 20 years of Saudi capital market development it's clear the present generation of professionals has contributed more in less time than could ever have been imagined before. These awards are in recognition of the impressive achievements of those companies and individuals who have made a difference."

The winners were:

Corporate Leader of the Year - Dr Abdulrahman Al Zamil, Chairman, Al Zamil Group
Investor Relations Award - Samba Financial Group
Corporate Social Responsibility Award - Savola Group
Environmental Contribution Award - SABIC
Young Executive of the Year - Dr Abdulmajeed A. Alhokair, CEO of Fouaz Alhokair Co.
Best Investment Potential Award - Saudi Kayan Petrochemical Company
Best IPO of the Year - Kingdom Holding Company
Corporate Governance Award - Samba Financial Group
Lead Manager of the Year Award - Samba Financial Group
Outstanding Contribution to the Saudi Arabian Economy - Prince Al Waleed bin Talal, Chairman, Kingdom Holding Co.

Sandwick described the Saudi IPO Summit - attended by around 300 delegates - as "the single most unifying event in 2007 for Saudi capital market professionals." He added: "While the modern history of Saudi capital markets is short, the players are already showing professionalism at global standards, adapted to the unique conditions of Saudi business."

The Saudi IPO Summit demonstrated that, increasingly, Saudi Arabian companies are using public offerings as a vehicle for raising capital attracting not only local but international investors who are supplementing existing high levels of liquidity.

In the second quarter of 2007, Saudi Arabia featured two of the three largest offerings in the region worth a combined total of $2.34 billion. Currently earning a fivefold return, the Saudi IPO market is expected to continue to grow as the kingdom's financial sector makes progress in liberalisation, regulations and standards.

During the Summit, Mutlaq Hamad Al Morished, Chairman, of Saudi Kayan Petrochemical Company, delivered a case study of Kayan's successful $1.8bn IPO. Another case study was provided by Abdullah Al Fallaj, VP Finance, of publicly quoted Ma'aden (Saudi Mining Company) who is planning to raise an additional $2.5bn through an IPO. Mining is seen as the next investment boom in the Kingdom after, oil and real estate.

The summit also addressed the fundamental issues affecting IPOs, such as reasons for launching, essential management restructuring, conversion of family businesses and exit strategies.

The Saudi IPO Summit received solid industry support with Samba as headline sponsor. Lead sponsors were Banque Saudi Fransi and Calyon; principal sponsor was NCB Capital; primary sponsor was Al Bilad Bank; Diamond sponsor was Al Jazirah Capital and Shariah Review Board; Gold sponsor was Naeem; and Silver sponsors were Saudi Investment Bank, Swicorp, Oracle, The National Investor and TradeNet.