- Consumer electronics and home appliance giant to offer 7.2 million shares, representing 30 per cent of company’s share capital
- Dominant market leader continues ongoing expansion, with 21 stores serving 90 per cent of domestic population; three new stores to open by end of year
- IPO to open to all Saudi nationals following completion of book-building process
- HSBC Saudi Arabia Limited appointed financial advisor, lead manager and lead underwriter; Blominvest Saudi Arabia named co-underwriter
United Electronics Company (eXtra), Saudi Arabia’s fastest-growing big box consumer electronics and home appliance retailer, announced today that the Saudi Capital Market Authority (CMA) has approved the company’s application to hold an Initial Public Offering (IPO).
The eXtra offering consists of 7.2 million shares, representing 30 per cent of the company’s share capital. Following the completion of the bookbuilding process, this landmark offering will open for subscription on December 5, 2011, and close on December 11, 2011. The offering will be open to all Saudi nationals.
HSBC Saudi Arabia Limited has been appointed as the Financial Advisor, Lead Manager and Lead Underwriter for the IPO, and Blominvest Saudi Arabia as co-underwriter.
Founded in 2003 and headquartered in Khobar, eXtra is by far the largest consumer electronics and home appliances retailer in Saudi Arabia – at more than three times the size of its nearest competitor in terms of number of stores. Indeed, with an annual turnover of more than SAR 2 billion and earnings of SAR 126.5 million for the 12-month period from July 2010-June 2011, eXtra is today uniquely positioned to realize its aim of becoming the regional consumer electronics retail leader by 2020.
Currently, eXtra provides the over 9 million customers it serves annually with more than 12,000 products across its 21 stores – serving 90 per cent of the population of Saudi Arabia. The company has announced that it intends to open three more stores by the end of this year.
In addition, eXtra recently introduced its online shopping portal (www.extra.com), the first fully fledged electronics and home appliance website of its kind in the Kingdom with home delivery to more than 23 cities.
“Today’s announcement represents a major milestone in the ongoing development of eXtra, one of Saudi Arabia’s fastest-growing companies and most-admired brands,” said Abdullah A. Al Fozan, Chairman, United Electronics Company (eXtra). “We are grateful to the Capital Market Authority for approving our application, which will enable the wider public to participate directly in our ongoing success.”
Al Fozan added that the offering comes at a time when eXtra is determined to continue its rapid growth trajectory.
“With more stores and more products than any other consumer electronics retailer in the Kingdom,” he said, “we continue to demonstrate our ability to meet the needs of our customers – wherever they are and whenever they need us. We are delighted to have this opportunity to expand our exceptional brand promise to the market through our upcoming public offering.”
“By any standard, eXtra represents one of the Kingdom’s true retail success stories, and we are very proud to be associated with the company’s IPO,” said Walid Khoury, Chief Executive Officer, HSBC Saudi Arabia Limited. “We are working closely with the management of eXtra and the Capital Market Authority during this exciting process.”
With more than 1,700 employees, eXtra is a major contributor to the economic growth and diversification of Saudi Arabia. It has been voted by one of the Kingdom’s leading financial newspapers as having the “Best Retail Working Environment in the Kingdom.”
In both 2010 and 2011, eXtra was cited by the Saudi Arabian General Investment Authority (SAGIA) as one of the Kingdom’s fastest-growing companies. In addition, the company was recently named, for the second consecutive year, as one of the top 50 brands in the Kingdom in recognition of its exceptional growth and sustained commercial success.
