Al-Aujan to float 30% of its share in an Initial Public Offering:
Samba appointed as the Financial Advisor and Lead Manager for the floatation
Al-Aujan Industries Company will offer 30% of its share in an IPO in a bid to expand its industrial & commercial activities in the field of canned juices and soft drinks. Al-Aujan has been in this business since its establishment in 1905.
The Company signed the agreement Wednesday April 19th 2006 with Samba Financial Group appointing it as the Financial Advisor & Lead Manager for the offering. The signing ceremony took place at the company's Head Office. The agreement was signed by the company's Chairman Mr. Adel Al-Aujan & Mr. Eisa Al-Eisa, Managing Director & CEO of Samba Financial Group. Al-Aujan Company is one of the leading family-owned business in the Middle East. The Company produces and markets juices and soft drinks such as famous brands like Vimto, Barbikan, Rani and others.
After the signing ceremony, Mr. Adel Al-Aujan said,” The agreement is in line with the company’s strategy and plan to consolidate its local presence and expand regionally”. He added, “The floatation will further boost the company capital and pave the way for promoting its business activities and provide support for its future plans”. Mr. Al-Aujan expressed his deep most confidence in Samba Financial Group and appreciation of the vast expertise which Samba will dedicate to ensure success of Al-Aujan IPO.
From Samba side, Mr. Eisa Al-Eisa, Managing Director & CEO appreciated Al-Aujan Industries selection of Samba as Financial Advisor & Lead Manager and added that Samba is proud to be part of this important stage in the company's history. He hailed Al-Aujan Industries' tremendous achievements and pioneering role in the national industry and said that by transfer into a joint stock company, Al-Aujan Industries has become a model for family companies that want to go public. " This phenomenon supports the state directives for reactivation of investment turnover and the citizens participation in the investment climate by providing opportune investment channels that accommodate the financial liquidity available in the local market", said Al-Eisa elaborating that Samba is well-prepared to dedicate all its financial & administrative potentials for making Al-Aujan IPO successful.
Al-Aujan Industries is one of Saudi Arabia's leading business companies. According to a recent survey, the company ranked among the best hundred Saudi companies with sales revenues amounting to SR1075 millions in 2005. Recently, the Company has achieved considerable size in its sales & revenues with the increasing growth of juices & soft drinks within the Saudi market. Because of the Company strong presence locally & regionally and of its famous brands, its has drawn up necessary plans for expansion as such that its business may cover several neighboring countries including UAE where a plant has been recently founded for meeting the increasing beverages demand of the regional markets.