Details

IPO of a Saudi premier industrial hub starts on 5 July 2007

Riyadh, Saudi Arabia, 29 June 08: Ma'aden signed Sunday 25/6/1429 (29/9/2008), at its Head Office in Riyadh, an Agreement with Sambacapital to act as its IPO Manager and Lead Underwriter for the intended Company’s IPO, which is scheduled to start on 5 July 2008. The Agreement was signed on behalf of Ma'aden by Dr. Abdullah Al Dabbagh, Ma'aden’s CEO and on behalf of Sambacapital by Mr. Eisa Al Eisa, Chairman of Sambacapital.

Dr Al Dabbagh said “the Company’s IPO comes in line with the Government’s privatization strategy to provide investment opportunities to citizens and enable them reap the benefits of the strong performance of public companies such as Ma'aden. It also comes in line with the Company’s endeavors to achieve its strategic aspirations to raise its capital to enable it to implement its expansion plans and secure funding for its long term programs”. Dr Al Dabbagh further pointed out that choosing Samba as the IPO Manager and Lead Underwriter sprang from our great confidence in its established track record in managing IPOs of such caliber.

Eisa Al Eisa, Chairman of Sambacapital, extended thanks and appreciations to Ma'aden for choosing Sambacapital as the Manager and Lead Underwriter for this IPO which is intended to start on 5 July 2008.

“We are proud of their trust and the opportunity given to us to participate in this vital juncture of for Ma'aden’s history, one of the national industrial hubs and a main pillar in the Kingdom’s strategic industrial and mining sector. We will mobilize our best expertise and capabilities in managing the largest IPOs in the Kingdom’s history to conclude this process successfully according to the optimal transparency and flexibility standards” said Al Eisa.

CMA has approved floating of 462,500,000 shares in Ma'aden during the period from Saturday 2/7/1429 (5/7/2208) up to and including Monday 11/7/1429 (14/7/2008), which represent 5% of Ma'aden shares. Part of the shares will be allotted to mutual funds and authorized persons. The share price will be SR20 (10 as nominal value and 10 as a premium) according to the Ministerial Resolution No 72, issued on 3/4/1427.

Ma'aden’s CEO explained that shares will be allotted on 2 phases: 25 shares will be allotted for each subscriber in the first phase, and the full subscribed number of share up to 2000 shares will be allotted in the second phase, providing that the number of allotted shares shall not exceed the number of shares floated for subscription. The remaining shares will be allotted proportionally according to the number of shares applied for by each subscriber. Al Dabbagh further indicated that the prospectus will be published at enough time prior to the subscription starting date. Such a prospectus will include all information and statements required for the investor to take his informed decision to subscribe or not.

“Ma'aden aspires to be a premier global producer and marketer of Phosphate fertilizers to contribute to enhancing the quality and quantity of agricultural produce for all nations in the world. The Company has made long strides to establish huge industrial facilities and established a joint venture with SABIC to develop the Phosphate reserves in the vicinity of the Kingdom’s Northern Borders to produce 3 million ton of phosphate fertilizers that will be marketed world-wide, which will help in technology transfer and open employment opportunities to Saudi Youth” said Dr. Al Dabbagh.

“Ma'aden proceeds in its Aluminum Production Project to utilize the Kingdom’s resources of Bauxite to produce Aluminum for local and international markets. For this purpose, the Company has signed recently an agreement on the basic conditions relating to the mutual strategic Project with Riotento to establish a fully fledged Aluminum Plant from mine to finished products, to produce 740,000 ton/annum of Aluminum of international standards at the mining city in Ras Alzoor in the Eastern Province. 70% of the produced Aluminum will be exported to external markets”, Al Dabbagh was quoted as saying.

Al Dabbagh stated also that “Ma'aden produces now approximately 200 ounce of Gold per year in addition to some precious metals. The Company is the biggest local producer of this important metal as it owns 5 mines of precious metals. Ma'aden also has an ambitious discovery program, which enables it to identify estimated reserves of 8 million ounces and confirmed reserves of 2 million ounces of gold, and it plans to raise its gold reserves to 10 million ounces by 2010”.

Ma'aden was incorporated in 14/11/1417H (23/3/1997) as a joint stock company to grow mining resources in the Kingdom. The Company’s current investments hit SR6 billion to utilize the reserves of Phosphate, Bauxite, precious metals, and other industrial metals, for which it has mining rights. The Company adopts the best practices and technologies to develop the Kingdom’s huge metal resources in line with its objectives to become a diversified world class company in mining, metals, and precious metals industries and to enhance the value of its shareholders.

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