alia – the royal jordanian airlines
(royal jordanian) plc. co.
Successful Completion of Initial Public Offering
Offer Price of JD 3.08 per Offer Share
• Offering of 59,905,079 Offer Shares
• Offer Price of JD 3.08 per Offer Share
• Shares to be listed on the Amman Stock Exchange
The Government of the Hashemite Kingdom of Jordan (the “Government”) today announces that the offer price of the 59,905,079 existing shares of nominal value JD1 each in Royal Jordanian representing 71 per cent. of its total issued share capital (the “Offer Shares”) being sold in the initial public offering by the Government (the “Offering”), has been set at JD 3.08 per Offer Share, resulting in a market capitalization for Royal Jordanian of JD 260 million.
The Offering consists of an offering of 22,277,142 Offer Shares to Jordanian retail and institutional investors, including a placement of 6.493,506 Offer Shares for no consideration with Royal Jordanian’s employee fund and 8,437,335 Offer Shares with the Social Security Corporation, and an offering of 37,627,937 Offer Shares to regional and international institutional investors, including a placement of 16,030,937 Offer Shares with the M1 Group.
The total proceeds from the Offering amount to JD 164.5 million. The Offer Shares are expected to start trading on December 17, 2007.
In commenting on the Offering, H.E Mr. Nasser Lozi, Chairman of the Royal Jordanian Executive Privatization Group and Chairman of Royal Jordanian said, “We have been very pleased with the volume of interest we have received from both the general public and also local, regional and international institutional investors, in particular the very positive response from retail investors in Jordan.”
Eng. Abdel-Rahman El-Khatib, Head of the Technical Team at The Executive Privatisation Commission representing the Government of Jordan said: “On behalf of the Government and the Executive Privatisation Commission, I would like to say a great thank you for the extensive expressions of interest and demand we have encountered in the last few weeks. Clearly investors are watching not only Royal Jordanian’s development but also the region’s development with great interest. Today Royal Jordanian has a proven track record of delivery with quality partnerships firmly in place and this has stood the Kingdom’s national flag carrier in good stead through the IPO process.”
Through its membership of oneworld Royal Jordanian is the only Middle Eastern carrier to be part of a global airline alliance and fully intends to leverage its oneworld membership to service a growing international network. Under the guidance of a proven, results-orientated management team, Royal Jordanian is enhancing its product offering and increasing its efficiency through fleet modernisation.
Citigroup Global Markets Limited is Sole Global Co-ordinator and Bookrunner of the Offering with Arab Jordan Investment Bank acting as Jordanian Lead Manager and SHUAA Capital PSC as Selling Agent.
