Fawaz Abdulaziz Alhokair & Company announces Alternative Subscription Channels for its IPO

Potential investors for the Fawaz Abdulaziz Alhokair & Company IPO will be able to apply for shares through alternative channels such as Automated Teller Machines (ATMs), Internet and Phone Banking over and above the conventional route of applying for shares.

Dr. Abdulmajeed Alhokair, Chief Executive Officer, Fawaz Abdulaziz Alhokair & Company said: "We are pleased to offer Alternative Subscription Channels such as ATMs, Internet and Phone Banking to potential investors. We believe that investors have increasingly become discerning and would like to opt for latest and easy-to-use technologies when it comes to filing applications."

"Besides, considering that it is Ramadan time, the Company intends to make life much easier for our brothers and sisters who intend to be part of our growth story. Revered Muslim Scholar Prof. Shaikh Abdulla Al Mutlaq has issued a Fatwa sanctioning the IPO and the trading of Fawaz Abdulaziz Alhokair & Company shares in the market. Prof. Al Mutlaq has also asserted that all operations of the Company are Shariah compliant and that our company is Naqia," he added.

"We will be opening 207 stores in the next few years and we have just signed up additional 15 international brand franchises. The Company is on a solid growth path and we are expecting very good response to our IPO," he concluded.

Investors can use any of the three alternative subscription channels through any of the 11 receiving banks: Saudi British Bank, Samba Financial Group, Al Rajhi Banking & Investment Corporation, National Commercial Bank, Arab National Bank, The Saudi Investment Bank, Riyad Bank, Banque Saudi Fransi, Bank Al Bilad, Bank Al Jazira and Saudi Hollandi Bank.

The IPO will be open for subscription for 10 days from Saturday October 7th to Monday October 16th, 2006. The minimum number of shares that an individual investor can subscribe is 10 shares and a maximum of 25000 shares.

HSBC Saudi Arabia Limited is the Financial Adviser and Lead Manager, SABB is the sole underwriter of the IPO, while Deloitte & Touche Bakr Abulkhair & Co are the registered auditors. The legal adviser to the transaction is the Law Office of Mohammed Al-Sheikh.

The share capital of Fawaz Abdulaziz Alhokair & Company is SR400 million (US$106.7 million) consisting of 40 million fully paid ordinary shares with a par value of per share of SR 10. The Company will be offering 30% of its share capital - 12 million ordinary shares - through the IPO.