Baker & McKenzie Advises Najran Cement Company on its Initial Public Offering
11 June 2012
Riyadh, Saudi Arabia, 11 June 2012 – Baker & McKenzie advised Najran Cement Company (NCC) on its Initial Public Offering (IPO) of 85 million shares at SAR 10 a share. The IPO represents 50% of the company's share capital at an aggregate offer price of SAR 850 million (US$227 million).
Part of the proceeds from the offering was paid to NCC to finance the expansion of the company’s cement plant at Sultana, in the Najran Province, and another part was paid to the selling shareholders proportionate to the number of offer shares sold by each selling shareholder. The successful IPO was oversubscribed.
NCC is a joint stock company listed on the Saudi Stock Exchange with a paid up capital of SAR 1.7 billion (US$453 million). NCC's objective is to be a main supplier of cement in the southern region of the Kingdom.
Karim Nassar, Partner in Riyadh, said: “We are really pleased to have assisted NCC on this very significant transaction. Despite facing unique challenges, the transaction was successfully closed due to the dedication of all the teams involved.”
Saudi Fransi Capital was the financial advisor on the transaction.
The Baker & McKenzie team was led by Karim Nassar and assisted by Aisha Gondal.
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