eXtra Initial Public Offering Opens

12/05/2011

• 7.2 million shares offered at SAR 55 per share
• Offering open to all Saudi nationals
• Subscription forms available at 7 local banks in Saudi Arabia

Khobar, Saudi Arabia; December 5, 2011: United Electronics Company (eXtra), Saudi Arabia’s fastest-growing big box consumer electronics and home appliance retailer, stated today that its highly anticipated Initial Public Offering (IPO) opened for subscription yesterday to all Saudi nationals and will end on Sunday, Muharram 16th, 1433H (corresponding to December 11th, 2011).

The eXtra offering consists of 7.2 million shares, representing 30 per cent of the company’s share capital. Following the completion of the bookbuilding process, the share price has been set at SAR 55, representing SAR 10 par value and a premium of SAR 45. The minimum subscription is 10 shares, while the maximum subscription is 250,000 shares.

All Saudi citizens can subscribe at any of the following 7 receiving banks: Saudi British Bank, National Commercial Bank, Arab National Bank, Samba Financial Group, Banque Saudi Fransi, Al Rajhi Banking and Investment Corporation and Riyad Bank.

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 poised to realize its aim of becoming the regional consumer electronics retail leader by 2020.

“This offering is an extremely important moment in the history of eXtra, which also represents a signal opportunity for Saudi investors to participate in the ongoing growth story of this company that they know so well,” said Abdullah A. Al Fozan, Chairman, United Electronics Company (eXtra).

Al Fozan emphasized that the company would continue to grow its footprint in the Kingdom in the years to come.

“By offering the widest choice of consumer electronics and home appliances in the market, at highly competitive prices and with superior after-sales support, we have gained the trust of the Saudi public,” he said. “As our expansion continues and as we move towards becoming a publicly listed company, we will ensure that we remain focused on delivering the eXtra promise.”

“Based on the strength of eXtra’s management team and continued progression in both revenues and profits, we anticipate significant demand for the company’s shares,” said Kareem Madi, Associate Director, Investment Banking Advisory, HSBC Saudi Arabia Limited, which is serving as Financial Advisor, Lead Manager and Lead Underwriter for the IPO.

Currently, eXtra provides the over 9 million customers it serves annually with more than 12,000 products across its [22] stores – serving 90 per cent of the population of Saudi Arabia. The company has announced that it intends to open two 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.

With more than 1,600 employees, eXtra is a major contributor to the economic growth and diversification of Saudi Arabia. It has been voted by one of the Kingdom’s leading economic newspapers having the “Best Retail Working Environment in the Kingdom.”

In both 2010 and 2011, eXtra was cited by SAGIA as one of the Kingdom’s fastest-growing companies. In addition, the company was recently named, for the second consecutive year, as one of the top 50 brands in the Kingdom in recognition of its exceptional growth and sustained commercial success.