United Electronics Company (eXtra), Saudi Arabia’s fastest-growing big box consumer electronics and home appliance retailer, is set to launch its initial public offering (IPO) in December.

Announced this on Sunday, eXtra said it has won approval from Saudi Capital Market Authority (CMA) to offer 7.2 million shares, representing 30 per cent of the company’s share capital in the IPO.

The Khobar-based retailer said once the bookbuilding process gets completed, the landmark offering will open for subscription for Saudi nationals from December 5 to 11.

HSBC Saudi Arabia has been appointed as the financial advisor, lead manager and lead underwriter for the IPO, and Blominvest Saudi Arabia will be the co-underwriter.

“Today’s announcement represents a major milestone in the ongoing development of eXtra, one of Saudi’s fastest-growing companies and most-admired brands,” said Abdullah A. Al Fozan, chairman of eXtra.

“We are grateful to the CMA for approving our application, which will enable the wider public to participate directly in our ongoing success,” he noted.

Al Fozan said the offering comes at a time when eXtra is determined to continue its rapid growth trajectory.

“With more stores and more products than any other consumer electronics retailer in the Kingdom,” he said, “we continue to demonstrate our ability to meet the needs of our customers – wherever they are and whenever they need us."

"We are delighted to have this opportunity to expand our exceptional brand promise to the market through our upcoming public offering," he added.

Founded in 2003, 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, said a company statement.

With an annual turnover of more than SR2 billion and earnings of SR126.5 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 retail leader by 2020.

Currently, eXtra provides the over 9 million customers it serves annually with more than 12,000 products across its 21 stores – serving 90 per cent of the population of Saudi.

The company plans to open three more stores by the end of this year, said Al Fozan.

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 home delivery to more than 23 cities.

“By any standard, eXtra represents one of the Kingdom’s true retail success stories, and we are very proud to be associated with the company’s IPO,” said Walid Khoury, CEO of HSBC Saudi Arabia.

“We are working closely with the management of eXtra and the Capital Market Authority during this exciting process,” he added.-TradeArabia News Service