the government of jordan launches initial public offering of royal jordanian shares
• Offering of up to 59,905,079 Offer Shares
• Offer Price range of between JD 2.75 and JD 3.40 per Offer Share
• Shares to be listed and traded on the Amman Stock Exchange
The Government of the Hashemite Kingdom of Jordan (the “Government”) today announced the commencement of an initial public offering by the Government of up to 59,905,079 existing shares in Alia—The Royal Jordanian Airlines (Royal Jordanian) Plc. Co. (the “Company” or “Royal Jordanian”) (the “Offering”), representing up to 71 per cent of the Company’s total issued share capital (the “Offer Shares”) at a price of between JD 2.75 and JD 3.40 per Offer Share (the “Offer Price”).
The Offering consists of (i) an offering of Offer Shares at the Offer Price to the public and certain institutional investors domiciled in Jordan (the “Jordanian Offering”) (ii) an offering of Offer Shares at the Offer Price to certain institutional investors outside Jordan and the United States in offshore transactions pursuant to Regulation S under the U.S. Securities Act of 1933 (the “Securities Act”) at the Offer Price (the “International Offering”) and (iii) a placement of up to 6,749,868 Offer Shares for no consideration with Royal Jordanian’s employee fund as part of an incentivisation scheme for the benefit of the Company’s employees (the “Employee Fund Offering”).
In commenting on the Offering, H.E Mr. Nasser Lozi, Chairman of the Royal Jordanian Privatization Group, and Chairman of Royal Jordanian said, “The Government made a commitment in 2006 to proceed with the second phase of the privatization of Royal Jordanian and, following in-depth planning and extensive preparation, today we are pleased to announce that we are ready to move forward on the privatization with the offering of up to 71 per cent of the Government’s shares to the general public in Jordan and to Jordanian and international institutional investors. Royal Jordanian has undergone significant changes over the past three years and today is well placed for the future.”
Eng. Samer Majali/ Royal Jordanian CEO said: “Royal Jordanian is the only Middle Eastern carrier to be part of a global alliance and intends to leverage its oneworld membership to service a growing international network. Under a proven, results-orientated management, Royal Jordanian has been enhancing its product offering and increasing its efficiency through fleet modernisation. A continuation of investment in human capital has generated efficiency gains through improved work processes and capabilities.”
Excluding domestic services the Company is the leading airline in the Levant, in terms of destination and frequencies of flights with a 68 per cent share of all two-way traffic between Jordan and the Levant and is in a strong position to take commercial advantage of the expected increase in traffic in the region.
“Launching the second phase of the Royal Jordanian Privatisation Programme adds another milestone in the significant reform measures the Government of Jordan has embarked on within the civil aviation sector. Royal Jordanian continues to implement its rigorous programme of strategic planning and effective changes including upgrading its fleet, routing and customer service,” commented Eng. Abdel-Rahman El-Khatib, Head of the Technical Team at The Executive Privatisation Commission. “As the Middle East is currently well positioned, both as a commercial and touristic destination, the Government has made enormous strides in restructuring the civil aviation sector in Jordan, introducing a new Civil Aviation law and establishing the Civil Aviation Regulatory Commission. A further milestone in Jordan’s civil aviation sector is reflected in the recently signed 25-year concession agreement with AIG consortium to rehabilitate, enhance and operate the Queen Alia International Airport, hence enabling the Kingdom’s national flag carrier to move forward with a modern, state of the art infrastructure in place.”
Citigroup Global Markets Limited is Sole Global Co-ordinator and Bookrunner with ARAB JORDAN INVESTMENT BANK acting as Jordanian Lead Manager and SHUAA CAPITAL PSC as Selling Agent.
This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America (including its territories and possessions, any state of the United States and the District of Columbia). This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.
