Fawaz Abdulaziz Alhokair & Company SR 1.32 billion IPO opens

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.

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. Each share is priced at SR 110 and the proceeds of the IPO will go to the founding shareholders on a pro-rata basis.

Dr. Abdulmajeed Alhokair, Chief Executive Officer, Fawaz Abdulaziz Alhokair & Company said:

"We appeal to all Saudi nationals to subscribe to Fawaz Abdulaziz Alhokair & Company IPO - and be a proud owner of shares of Saudi's market leader in Fashion Retail. Come join us; have a slice of future prosperity and be involved in the growth of a business that is part of everyday life in the Kingdom."

He added: "Post IPO, the Selling Shareholders intend to maintain their 70% shareholding in the Company. We are currently considering several Mergers & Acquisition (M&A) deals in Saudi Arabia in order to expand our existing portfolio and to give a boost to our future Earnings Per Share (EPS)."

"Fashion retailing is growing at more than 20% per anum and has the potential to continue to show robust growth in the future. We welcome all our Saudi brothers and sisters to invest in Fawaz Abdulaziz Alhokair & Company," he said.

For the fiscal year ended March 2006, Fawaz Abdulaziz Alhokair & Company had sales of SR1.3 billion. The sales turnover for the six months ended 30th September 2006 was SR 703 million, registering a growth of 20% when compared to the same period of last year.

Fawaz Abdulaziz Alhokair & Company sold more than 15 million items in 2005/06 and served more than 12 million customers. As of March 2006, the Company had 617 stores and 42 international brands in its portfolio.

The international brands in its portfolio include Zara, Massimo Dutti, Promod, Adams, Aldo and Monsoon. It has a strong product offering across all major segments like womenswear, menswear, kids & teens fashion, footwear and accessories to name a few.

HSBC is the Financial Adviser and Lead Manager, The Saudi British Bank 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.

SABB is the sole underwriter of the IPO and also a selling agent. The other banks that are involved in selling the issue are: 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 connectivity between all these banks has already been tested including their branches.