Al-Babtain Power & Telecommunication Company Monday announced that the Company is planning to expand its production facilities. Al-Babtain Power & Telecommunication Company is planning to expand its production facilities in the industrial zone including the addition of two galvanizing production units and three new units for towers & steel buildings production.
The Company owns several plants in the Second Industrial Area. During 2005, the company purchased a parcel of land with an area of 1,000,000 square meters that will be utilized in the Company’s expansion plans.
Mr. Mohammad Al-Babtain, Chairman, Al-Babtain Power & Telecommunication Company said: “The total cost of expansion is pegged at SAR 50 million. We believe that the expansion plan will improve the production process of the galvanized poles, towers and structural steel. We expect to reap production benefits of these expansions by the end of 2008.”
Mr. Al-Babtain added: “The growth potential in the Middle East & North Africa power sector makes it one of Al-Babtain’s main target markets. The Gulf Electricity Interconnection Grid and the Arab Electricity Interconnection Grid that will link Egypt, Jordan, Syria, Lebanon, Iraq and Turkey as well as North African Grid that will link Libya, Tunisia, Algeria and Morocco will require significant transmission towers. Al-Babtain is uniquely positioned to benefit from these projects since we have operations in both Saudi Arabia and Egypt.”
“Similarly, in Telecom, the MENA market is considered to be a promising market as there is high demand for both mobile handsets and land lines. Al-Babtain management views that the MENA region will offer the Company significant business opportunities in the future,” he concluded.
Al-Babtain Power & Telecommunication Company has announced its plan to launch its Initial Public Offering (IPO) that will open for subscription for 10 days from Saturday November 4th to Monday November 13th, 2006. HSBC has been appointed as the financial adviser and lead manager for the IPO, while SABB is the sole underwriter.
The minimum number of shares that an individual investor can subscribe is 10 shares and a maximum of 25000 shares. The minimum subscription amount is SAR 400 and maximum subscription amount is SAR 1,000,000.
The share capital of -Babtain Power & Telecommunication Company is SAR 270 million (US$72 million) consisting of 27 million shares with a nominal value of SAR 10 each. The IPO comprises 8.1 million shares – representing 30% of its share capital. Each share is priced at SAR 40 per share.
