Saudi KEC to launch $272m IPO

23 May 2010

(MENAFN) Saudi Arabia’s Knowledge Economic City (KEC) announced that it will start an initial public offering (IPO) to raise as much as $272 million, Reuters reported.

The firm’s Chief Executive, Tahir Bawazir, said that the IPO will offer 30 percent of the company through issuing 102 million shares and will help raise the firm’s capital to $906 million.

KEC is one of four economic cities the kingdom is building to diversify its economy aiming to steer away from oil dependency and to provide job opportunities for its growing population of over 25 million.

Bawazir said that the firm plans to develop 4.8 million square meters of land inside Medina and hopes to benefit from the millions of pilgrims who visit the city every year as it plans to build a station for a high-speed linking Medina with Makkah.

KEC expects to sign contracts worth approximately $186.6 million by the end of this year and will sign today a $106.65 million contract with US firm Deep Cloud to develop a data centre.

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