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SAUDI FEMALES SHOW GREAT
ENTHUSIASM FOR THE ETIHAD ETISALAT IPO
ETIHAD ETIASAT CEO: THE SUPPORT
GIVEN TO US HAS MOTIVATED US FURTHER AND WE PROMISE TO PROVIDE SUPERIOR SERVICE
ETIHAD ETISALAT PREPARED AND
DISTRIBUTED MORE THAN TWO MILLION IPO FORMS
Riyadh, 18 October 2004 –
Banks in Saudi Arabia witnessed higher than expected demand by Saudi citizens in
the first three days of the initial public offering of shares by Etihad
Etisalat.
The Etihad Etisalat IPO started on the 2nd of
Ramadan1425H corresponding to October 16, 2004 with 20 million shares (20% of
the total shares of Etihad Etisalat) public subscription, and priced at SR 50
per share, with minimum and maximum purchase limits set at 10 and 10,000 shares
per person, respectively.
Etihad Etisalat in conjunction with SAMBA and all the
participating banks have set up a task force whose main mission is to insure
that the IPO, which runs until the 11th of Ramadan corresponding to
25th of October 2004 proceeds in an organized manner and all
participants are able to buy shares in Etihad Etisalat. Furthermore, all the
participating bank’s branches have opened their doors to the subscribers and
have been supplied with an adequate number of IPO forms, with more than two
million IPO forms (distributed thus far) to meet the demands of the customers
wishing to participate in the IPO.
Mr. Khaled Al Kaf, CEO of Etihad Etisalat said, “We are
delighted in the higher than expected turnout for the IPO, especially by Saudi
females, who have flocked to banks kingdom-wide to participate in the IPO”. He
further added, “This is an obvious indication of the great confidence that the
Saudi citizens have in Etihad Etisalat, and this will further motivate us in
carrying out our plans to provide unmatched mobile phone services throughout the
Kingdom.”
Al Kaf explained that the awarding of the second mobile phone
license and the first 3G mobile phone license to Etihad Etisalat is further
testimony to the experience and expertise that Emirates Telecommunications
Corporation (Etisalat) has accumulated over the years in providing unmatched
services to its customers.”
Etihad Etisalat expects to start its operations in 14 Saudi
cities representing 60% of the Kingdoms inhabited regions as scheduled with
services extended to cover 32 cities in the future. Etihad Etisalat expects its
subscriber base to rise to one million customers by the end of the first year of
operation.
Etihad Etisalat has begun to receive employment applications
from Saudi citizens, Al Kaf said. During the next two months, it is expected
that number of Saudi citizens employed by Etihad Etisalat will reach 250. By the
end of the first operation year, there will be 500 employees, most of them being
Saudis.
Etihad Etisalat is a Saudi joint-stock company under
formation, which was established under Royal Decree Number M/40 on 2/7/1425H.
The capital of the Company is five billion Saudi Riyals, 35% of it is owned by
the Emirates Telecommunications Corporation (Etisalat), while 65% is owned by
Saudis share holders as per the following:
GOSI - General Organization Social Insurance-(15%), Al-Jomaih
Holding Company-(6%), Abdulaziz Al Saghyir Commercial Investment Company-(6%),
Rana Investment Company-(6%), Abdullah & Said M.O. Binzagr-(6%), Riyadh Cables
Group of Companies-(6%). 20% is offered for public subscription during the
10-day IPO that began on 2nd of Ramadan 1425H corresponding to October 16, 2004.
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