2005 News Story

SADAFCO shares considerably over-subscribed in IPO

With four days to go before the close of applications in the Initial Public Offering (IPO) of the Saudi Arabian Dairy and Foodstuff Company (SADAFCO), shares are already 227 percent oversubscribed. The National Commercial Bank (NCB), as financial adviser and sole underwriter of the IPO, confirmed the over-subscription yesterday, stating that 355,449 subscribers had paid over SR one billion between April 25 and 30. About one third of the subscription applications were made through distribution channels other than the selected bank branches, including telephone banking and 24-hour trading through the Internet. SADAFCO is offering 1,950,000 shares representing 30 percent of the company's authorized capital, at the price of SR260 [U.S.$69.43] per share.