SBG's CPC considering IPO
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Since our Dubai property market update went to press in July 2011 we have been through what is traditionally the quiet time of the year for the UAE, further enhanced this year by the coming together of the traditional leave month of August and Ramadan.
Throughout the last quarter, Bahrain has continued a fragile recovery towards political stability after the period of anti-government hostilities witnessed in the first half of the year.
Quarter 3 is traditionally the quiet time of the year for the UAE, further enhanced this year by the coming together of the traditional leave month of August and the Holy month of Ramadan.
Saudi Arabia's largest manufacturer of building materials and a unit of Binladin Group, Construction Products Holding Company (CPC) is preparing to offer its shares to the public and is set to appoint lenders for the potential sale.
CPC has allocated around 30 per cent of the company for the initial public offering (IPO), with the potential public sale taking place on the Saudi exchange Tadawul in 2012 or 2013.
A bookbuilding process is to determine the value of the IPO, although its large size could require two or three lenders to underwrite it. Pitching meetings have been held in the Kingdom and CPC is due to appoint a financial adviser for the offering, as well as lead managers and bookrunners, by the middle of next month.
The underwriting banks will be appointed closer to the time, although they are likely to be the same institutions that are mandated to advisory and lead manager roles.
CPC provides up to 80 per cent of the building materials required for construction projects in Saudi Arabia and has more than 30 manufacturing facilities across the Kingdom. Last August, Standard Chartered Private Equity (SCPE), a unit of the UK-based lender, acquired a $75 million minority stake in CPC.
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