Saudi Arabia's Maaden to launch SR9bn IPO in July

L Maaden CEO Abdallah Dabbagh ONDON (ICIS news)--Saudi Arabia Mining Co (Maaden) plans to sell half of its shares through an initial public offering (IPO) at the beginning of July, it said over the weekend.

Maaden said it was offering 462,500,000 shares for public subscription at a price of Saudi riyal (SR) 20 per share – a total value of more than SR9bn ($2.4bn).

In a joint venture with Saudi petrochemicals giant SABIC, Maaden is developing a 3m tonne/year diammonium phosphate fertilizer (DAP) plant complex in Raz az-Zawr, near Al-Jubail, the largest of its kind in the region.

"The decision to offer shares in the company was taken to fulfil the company's expansion strategy and broaden its ownership base among the Saudi public,” said Maaden CEO Abdallah Dabbagh, adding that move would be the largest ever flotation in the region’s minerals sector.

He said Maaden was currently making investments of around SR60bn to develop phosphate and bauxite reserves in the Kingdom, along with the gold and industrial minerals the company already mines.

The SABIC joint venture project was expected to go on stream in mid-2010. The costs of the project were reported to have inflated by more than 60% since its initial announcement.

($1 = SR3.75)

Source：ICIS News

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