2004 News Story

Etisalat IPO oversubscribed

CEO of the Samba Financial Group Issa Al-Isaa reported yesterday that the initial public offering (IPO) of the new Saudi mobile phone company Etisalat has been oversubscribed 51 times, to reach SR51 billion [U.S.$13.6 billion], the largest IPO in the history of the Saudi stock market. Twenty million shares were on offer at SR50 [$13.3] each, totaling SR1 billion [$266.6 million]; there were, however, 4.28 million applicants – about one quarter of the Kingdom’s population. The surplus subscription will be returned through the banking system on November 4. A limit of 10,000 shares per person had been set to allow room for small investors, and a minimum per person of 10 shares, with the offering restricted to Saudi nationals. This will be adjusted to accommodate the new situation.