eXtra announces launch of book building process

11/16/2011

• Bookuilding to begin on 21 November 2011, ahead of IPO to open for subscription on 5 December 2011
• IPO to open to all Saudi nationals following completion of bookbuilding process
• HSBC Saudi Arabia Limited appointed as financial advisor, lead manager and lead underwriter; and Blominvest Saudi Arabia as co-underwriter

Khobar, Saudi Arabia; November 19th, 2011: United Electronics Company (eXtra), Saudi Arabia’s fastest-growing big box consumer electronics and home appliance retailer, announced today that the bookbuilding process for its upcoming Initial Public Offering (IPO) will commence on  21 November 2011.

Earlier, the Saudi Capital Market Authority (CMA) approved the company’s application to hold an IPO, commencing on 5 December 2011, which will offer 7.2 million shares, representing 30 percent of the company’s share capital. The offering, which will close on 11 December 2011, will be open to all Saudi nationals.

Institutional investors participating in the bookbuilding process may subscribe to up to 100 percent of the “eXtra” shares offering. Following individual subscription to the IPO, the number of shares allocated to institutional investors may be reduced to 3.6 million shares, or 50 percent of the offering.

HSBC Saudi Arabia Limited has been appointed as the Financial Advisor, Lead Manager and Lead Underwriter for the IPO, whereas Blominvest Saudi Arabia has been appointed as Co-Underwriter.

Founded in 2003 and headquartered in Khobar, eXtra is by far the largest consumer electronics and home appliances retailer in Saudi Arabia – at more than three times the size of its nearest competitor in terms of number of stores. Indeed, with an annual turnover of more than SAR 2 billion and earnings of SAR 126.5 million for the 12-month period from July 2010-June 2011, eXtra is today uniquely positioned to realize its aim of becoming the regional consumer electronics and home appliances retail leader by 2020.

“The launch of bookbuilding signals the start of an extremely transparent process of offering eXtra’s shares, and we will maintain that commitment to transparency moving ahead,” said Abdullah A. Al Fozan, Chairman, United Electronics Company (eXtra). “We look forward to sharing our equity story with institutional investors during this important step in the offering process.”

Al Fozan added: “Based on our track record of sustained growth, we are confident that the outcome of the bookbuilding process will be a level of price discovery that fairly reflects the value of eXtra’s shares in the market. This is an exciting moment for all of us at eXtra – and just the beginning of our journey towards becoming one of the Kingdom’s most admired listed companies.”

“Working closely with the management of eXtra, we look forward to capturing and recording a level of institutional demand that accurately reflects the company’s current market leadership position and future growth opportunities,” said Walid Khoury, Chief Executive Officer, HSBC Saudi Arabia Limited.

Currently, eXtra provides the over 9 million customers it serves annually with more than 12,000 products across its 21 stores – serving 90 percent of the population of Saudi Arabia. The company has announced that it intends to open three more stores by the end of this year.

In addition, eXtra recently introduced its online shopping portal (www.extra.com), the first fully fledged electronics and home appliance website of its kind in the Kingdom.