| Q: Why is Ma'aden doing an IPO? |
| The Saudi government has decided that Ma'aden should conduct an IPO to increase its capital base and raise funds for its two development projects: the Phosphate Project and the Aluminium Project. The total costs of the projects is US$16.11 or SR60.41 billion. Thirty percent of total project costs of the Phosphate Project will be funded by equity contributions from Ma'aden and SABIC in proportion to their interests in the project. The remaining 70 percent of the project costs will be funded by limited recourse debt financing. It is currently expected that 30% to 40% of the total costs of the Aluminium Project will be funded through equity contributions from Ma'aden and Rio Tinto Alcan with the balance to be funded through limited recourse debt.
Ultimately through this diversification, the Saudi government wants Ma'aden to become the third pillar of Saudi industry alongside Saudi Aramco and SABIC. This development is part of the government’s plan to diversify the economy.
Another important point to add is that the government is seeing this IPO as an opportunity to redistribute wealth. This re-distribution takes places through the IPO price at which the government is selling its stake and because the IPO enables Saudi nationals to participate in the creation of wealth when Ma'aden becomes the third pillar of the Saudi economy.
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| Q: If I invest in Ma'aden, am I Shari’a compliant? |
| Ma'aden is an international company. We operate in accordance with Saudi law and try to be as Shari'a compliant as possible. Given the nature and international aspect of our business this is not always totally possible and there may be times where part of our financing is not Shari'a compliant due to the nature of circumstances.
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| Q: You have a large amount of investment income. Is this income from Shari’a compliant investments? |
| As of now the money deposited with banks are 100% Islamic compliant.
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| Q: How much of the company will be floated? |
| 50% of the shares in Ma'aden will be offered for subscription and will be listed on Tadawul.
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| Q: When will it take place? |
| The retail subscription period will start on the 5th of July and will run until the 14th of July.
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| Q: How many shares will be offered? |
| The number of shares to be offered is 462,500,000.
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| Q: What will the issue price of shares be? |
| The issue price of the shares will be 20 Riyals.
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| Q: What is the estimated offer size? |
| The offer size will be SR 9,250,000,000.
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| Q: Who are the current shareholders? |
| The Saudi Government currently owns 100% of shares in Ma'aden but will decrease its stake to 50% following the IPO.
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| Q: Will the company raise money as part of the float? |
| The total proceeds from the Offering are estimated to be SR9,175,000,000. This will be paid
to the Company.
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| Q: What will the free-float be? |
| The Saudi government will keep a majority stake in the company, but the exact free-float has not been decided yet.
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| Q: What will the proceeds be used for? |
| This proceeds will be paid to Ma'aden and will be primarily used to assist in funding (the costs of) the Phosphate and Aluminium Projects as well as the Chlor Alkali Project and the infrastructure, magnesite, low grade bauxite and kaolin and other projects.
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| Q: What is the valuation? |
| Due to CMA regulations applying to a company in the process of an IPO, we are unable to answer this question. The offer price per share is 20 Riyals.
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| Q: Who are the financial advisors for Ma'aden’s IPO? |
| Financial Advisor and Sole Book Runner is JP Morgan.
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| Q: Who are the lead underwriters? |
| Samba is Lead Underwriter and Lead Manager.
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| Q: Who are the receiving banks? |
| The other receiving banks are Banque Saudi Fransi, Samba, Bank Albilad NCB, Riyad Bank, Arab National Bank, SABB, Saudi Hollandi Bank, Al Rajhi Bank, SIB, Bank Aljazira and the Saudi Investment Bank.
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| Q: What is Ma'aden’s dividend policy? |
| Dividends may be distributed by the Company from its annual net profit after deducting general costs and other costs. However, prior to the payment of dividends, the Company is required to deduct 10 % of the net profit after deducting general costs and other costs and allocate such amount to statutory reserves. The Ordinary General Assembly may discontinue this deduction when the statutory reserves amount to half of the Company’s paid-up capital.
Any declaration of dividends will be dependent upon the Company’s earnings, its financial condition, the condition of the markets, the general economic climate, and other factors, including analysis of investment opportunities and reinvestment needs, cash and capital requirements, as well as other legal and regulatory considerations.
Although it is Ma'aden’s intention to pay annual dividends to its shareholders, it is unlikely that the Company will be in a position to make annual dividend payments to its shareholders during the development phases of the Phosphate and Aluminium Projects and does not make any assurance that any dividend will actually be paid thereafter, nor any assurance as to the amount, which will be paid in any given year.
The distribution of dividends is also subject to certain limitations contained in the Bylaws. Further information on this can be found in the Prospectus.
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| Q: As a listed company, how will Ma'aden communicate with investors? |
| As a listed company, Ma'aden has the commitment to transparent communication with all its shareholders and will practice best-in-class Investor relations. Ma'aden will publish results quarterly and produce a detailed Annual Report to keep shareholders informed of its growth and progress.
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| Q: What do you think are the most succinct investment messages on Ma'aden? |
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