4 June 1998: Saudi Arabia“s HA al-Zamil & Brothers is reportedly seeking to convert its air-conditioning, steel buildings and glass businesses from limited liability to closed joint-stock status as t…
4 June 1998: Saudi Arabia“s HA al-Zamil & Brothers is reportedly seeking to convert its air-conditioning, steel buildings and glass businesses from limited liability to closed joint-stock status as the first part of plans to take the company public. The businesses, which had turnover of SR 1,100 million (US$ 293 million) in 1997, are planned to form a new joint-stock entity with capital of SR 300 million (US$ 80 million), a Zamil official told the press. The move is understood to involve the placement of 2.4 million shares, which will be sold at SR 222 (US$ 59.20) each. Selected investors have reportedly been invited to subscribe to the placement, which is due to close on 6 June. Zamil, a diversified industrial and commercial group, is the third significant local family-owned business to take steps recently towards opening up share ownership. In 1997, the government approved the conversion to joint-stock status of both the country“s largest bank, National Commercial Bank, which was majority-owned by Khaled Bin Mahfouz, and retailer Ahmad Hasan Fitaihi Company. Under Saudi law, shareholders in a new joint-stock entity are not permitted to sell or trade their shares for two years, except to each other. After this, the company can apply for listing on the local stock market.