30% of its shares are for IPO
SRMG Appoints Samba as Financial Consultant and IPO
Manager for Al-Madina Printing & Publishing Company
The Saudi Research & Marketing Group (SRMG) entered into an agreement with Samba Financial Group appointing it as the Financial Consultant and IPO Manager for Al-Madina Printing & Publishing Company Initial Public Offering. Building on the Company's successive achievements and encouraging financial results, SRMG resolved to sell 30% of its subsidiary, Al-Madina, on the recommendation of its Board of Directors, led by its Chairman HRH Prince Faisal Bin Salman.
The IPO is anticipated to take place in the first half of 2007 following approval of the competent authorities. Al-Madina shares will be traded on the Saudi Stock Exchange.
SMRG Chairman, HRH Prince Faisal Bin Salman, who signed the Agreement on behalf of SMRG with Mr. Eisa Al-Eisa, Samba Managing Director &CEO, said the IPO signifies the great achievements of the Saudi Media giant as well as its subsidiaries coupled with encouraging financial results in the recent years. "This Agreement reflects the tremendous success of our Group" Prince Faisal said. It also denotes a new phase of development and expansion as the group intends to implement new projects and expand its business horizons" the Chairman said.
Speaking about Al-Madina, Prince Faisal said it enjoys strong financial position and has realized considerable growth in terms of revenues and profits as a result of continuous increase in its activities aiming at strengthening its position as a market leader. "The SMRG Board if Directors decided to offer 30% of Al-Madina for Public subscription after conducting a market study and start official procedures to hold the IPO", the Prince explained. He expressed his confidence in Samba Financial Group, saying it is highly capable of managing the IPO in the best manner, recalling the success Samba achieved in managing SRMG's IPO earlier this year.
Mr. Eisa Al-Eisa, Samba Managing Director & CEO extend his thanks and appreciation to SRMG for their confidence in Samba and selecting it as the Financial Consultant and Manager for Al-Madina IPO. "This Agreement renews our constructive cooperation with SRMG", he said, adding that "Samba will mobilize the best of its technical and managerial resources to make the IPO a big success". He also spoke highly about Al-Madina saying that the Company has proved its prominence by achieving substantial growth rates continuously and making strategic expansions in accordance with the growing market demand.
Al-Madina, a fully-owned subsidiary of SRMG, is the largest printing facility in the Middle East, consisting of printing presses in Riyadh, Jeddah, and Dammam. Further, Al-Madina has recently acquired Hala Printing Press, a leading high-end printing press in Riyadh.
Al-Madina’s revenues and net income stood at SR245 million and SR68 million in 2005 and anticipated to grow significantly by more than 45% in 2006 due to recent business expansion and acquisitions.
Al-Madina operates state-of-the-art machinery across all of its printing presses, and offers a full range of printing services, including the printing of SRMG's publications, as well as printing for third parties (schoolbooks on behalf of the Ministry of Education, specialized magazines and periodicals, newspapers, catalogues, brochures, etc).
Printing services form an integral aspect of SRMG's expansion strategy, aiming to capture the strong potential in the printing industry in the Middle East by undertaking investments and / or acquisitions in the printing industry in the region.