Ma'aden offers 462,500,000 shares for public subscription
RIYADH, 21 June 2008: The Saudi Arabian Mining Company, Ma'aden, has announced its intention to sell 50% of its shares, comprising 462,500,000 shares, via an initial public offering (IPO) at the beginning of July 2008. The price of SR20 per share, made up of SR10 as nominal value and SR10 as a premium, has been set in accordance with the decision of the Council of Ministers number 72 dated 3/4/1427H. Additionally, a proportion of these shares will be made available to investment funds and licensed individuals.
The official announcement was made by Ma'aden’s President and CEO, Dr. Abdallah Dabbagh at a press conference in Riyadh today. Dr. Dabbagh indicated that the period for public subscription to the IPO will be from 2/7/1429H (05/07/2008) until the end of working hours on 11/7/1429H (14/07/2008).
Dr. Dabbagh stated, "The allocation to retail subscribers will take place in two stages. In the first stage, each subscriber will get a minimum of 25 shares. During the second stage, up to 2000 shares will be allocated to subscribers who have applied for more than 25 shares as long as the total shares allocated do not exceed total shares offered to retail subscribers. The balance of the Offer Shares, if available, will be allocated on a pro-rata basis."
He also said, "Before the IPO Ma'aden will publish a prospectus for investors containing information about the company. It will also contain the share price, financial statements and other information about the company, its activities and management." He also offered his appreciation to the Capital Market Authority for its support during preparation for the offering.
According to Dr. Dabbagh, "The decision to offer shares in the company was taken to fulfill the company's expansion strategy and broaden its ownership base among the Saudi public. Ma'aden has achieved a pioneering position in the mineral sector at national and regional levels, and intends to further strengthen this position."
“We are very proud to be the first company in the region investing in major projects in the mineral sector especially at a time of such heightened economic development in the region and the Kingdom in particular." He continued by indicating that Ma'aden is currently making significant investments, of approximately SR 60 billion, to develop phosphate and bauxite reserves along with gold and industrial minerals that the company already mines. He added that Ma'aden adopts recognized industry best practice and latest technologies to succeed in its aims of becoming a world class minerals enterprise and achieving value for its share holders.
"Through its recently signed joint venture agreement with the Saudi Basic Industries Corporation (SABIC), Ma'aden has started construction of world scale plants to manufacture phosphate fertilizer for export around the world. The desert Kingdom of Saudi Arabia will contribute to greater agricultural productivity through the annual production of three million tons of diammonium phosphate (DAP) thereby helping to feed the world. The phosphate will be mined in the north of Saudi Arabia and processed at Ras Az Zawr, a new purpose built industrial complex and port. The project will create employment opportunities for young Saudis and bring new technologies into national industries.
"The company is also forging ahead with its aluminum project which will exploit the considerable bauxite deposits in middle Saudi Arabia to produce alumina and ultimately aluminum for domestic and international markets. Recently, the company signed a Heads of Agreement with Rio Tinto Alcan to develop this integrated "mine-to-metal" project which will produce 740 thousand tones of aluminum within the minerals industries complex at Ras Az Zawr in the Eastern Province.
"Ma'aden is Saudi Arabia’s largest gold producer, delivering around 200,000 ounces of gold a year in addition to other precious and base metals, including silver and zinc. The company’s gold and base metals division operates five mines which together have 1.3 million ounces of gold ore reserves. Ma'aden also has an ambitious exploration program that has identified 8 million ounces of measured, indicated and inferred resources."
Dr. Dabbagh said that he anticipated high demand for the shares offered by the company due to its strong reputation within the Kingdom and investor confidence generated by its track record in the mineral sector. He also commented that the offering will be the largest floatation in the region’s minerals sector and the first of its kind in Saudi Arabia.
Ma'aden was established as a Saudi Arabian joint stock company in March 1997 to facilitate the development of Saudi Arabia’s non-petroleum mineral resources and to diversify the Kingdom’s economy away from the petroleum and petrochemical sectors. Ma’aden is engaged in the development, advancement and improvement of all aspects of the mineral industry, mineral products and by-products and related industries in Saudi Arabia. In July 2008 Ma’aden offered 50% of the company’s shares for subscription in a successful SR 9.25 billion IPO. Ma’aden has progressed towards realizing its vision of building a world class mineral enterprise and its mission of being a profitable, publicly owned, international mining company, while maintaining the utmost concern for human resources, health and safety, environmental and social issues.
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Ma'aden Corporate Communications Department
T: +966 55 3063813
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