Ettihad Etisalat IPO descends into chaos

25 Oct 2004

The rush to buy shares in the SAR1 billion (USD226.6 million) Ettihad Etisalat IPO threatened to descend into chaos last week after being oversubscribed by a factor of 30. At one point Saudi police were called in to quell unrest among investors battling for application forms with local sources reporting three staff at one bank being sacked for ‘improper conduct’. Upon completion, Ettihad Etisalat, which won a 25-year licence to operate the country’s second mobile network along with a 3G concession, could see its capitalisation value rise to SAR7 billion. It hopes to launch a GSM service covering 32 cities in February 2005.

Saudi Arabia