Al-Obeikan Industrial Investment Group appoints Saudi Hollandi Bank as IPO Lead manager

Taking place at the Bank's headquarters in Riyadh, the agreement was signed between Sheikh Fahad Abdullah Al-Obeikan, Chairman of Al-Obeikan Industrial Investment Group and Mr. Giel-Jan van der Tol, Managing Director of Saudi Hollandi Bank in the presence of senior officials from both organisations.

Al-Obeikan's decision to list its stocks at this time is in line with the Group's strategic plan to convert into a joint stock company so that it is better placed to meet the challenges posed by international competition, especially after Saudi Arabia's long anticipated membership of the World Trade Organisation (WTO).

The Group recently obtained the approval from the Ministry of Commerce to convert to a closed joint stock company in preparation for its public listing next year.

The Group's core business activities include printing, packaging and publishing, which have experienced strong growth due to the high levels of liquidity in the Saudi market.

"The population and economic growth within the Kingdom are positive drivers of the Saudi economy and encouraging indicators of future potential," stated Sheikh Al-Obeikan.

"The company's markets have been consistently expanding, which enable us to invest in new ventures that will attract foreign investment and technical expertise from selected global partners." he added.

"We have developed to become a leader in the packaging industry across the region. Our products are export oriented and we will be seeking to establish a close working partnership with international distributor organizations in due course.

"The Group's recent investments include the establishment / expansion (?) of its Duplex Board Mill and Obeikan Combibloc Long Life Liquid Packaging Factory and, once the Carton Board Factory comes on-stream, will become the region's largest packaging manufacturers," added Sheikh Al-Obeikan.

Giel-Jan van der Tol, Managing Director of the Saudi Hollandi Bank said:
"This mandate reinforces our drive to be a key player in the Capital Markets in Saudi Arabia. We have considerably expanded our Investment Banking team with the appointment of Saudi and international experts, who provide our customers with top class consultation and advisory services.

Mr. Van der Tol also stated "stated that "the Bank has recently approved a long term project financing for Al-Obeikan group to finance a SAR 2.1 bln project that was awarded to Obeikan through an international tender called by the Arab Bureau of Education for GCC States for localizing Mathematics and Science school books from grade 1-12 in GCC countries and Yemen". He also added "Al-Obeikan will translate and adapt international series of Harcourt school books with all necessary supporting material including electronic format, CDs', video etc, will train the trainers who will train the teachers in every participating country and will deliver the books and materials to ministries of educations during the period 2006-2013".

"We are delighted to be selected as Lead Manager to Al-Obeikan, and look forward to provide all necessary assistance in executing this transaction over the next six months," he added.