* Co owned by Saudi conglomerate Olayan Group
* Hires Morgan Stanley as financial advisor - sources
* IPO may raise 300 mln-500 mln riyals - source
* IPO scheduled for Q1 2013 listing - source
By Dinesh Nair
DUBAI, April 23 Health Water Bottling Co Ltd, a
company owned by Saudi Arabian conglomerate Olayan Group, is
planning to go public by issuing 30 percent of its shares in a
flotation in the first quarter of 2013, three sources said.
Health Water, which was formed in 1973 and is the sole
distributor of Holsten non-alcoholic beer and Power Horse energy
drink in the kingdom, is planning to raise between 300 million
and 500 million Saudi riyals ($80 million-$133 million) from the
public offering, said one of the sources.
Health Water, which also owns the "Nova" mineral water
brand, has hired Morgan Stanley as financial advisor to
manage the sale, the sources said, speaking on condition of
anonymity as the matter is not public.
"It's a pretty good business which generated about $120-$130
million in net income last year. A float from the group is going
to generate investor interest," the source said.
Health Water officials were not immediately available for
Olayan Group is one of the largest family-owned firms in the
kingdom and owns a sizeable stake in Swiss bank Credit Suisse
. It has a multi-billion dollar portfolio of
investments spread across major asset classes globally.
Traditionally, equity markets have been a popular source of
funding for Saudi companies, given the nascent nature of bond
markets and a slowdown in bank lending.
Unfavourable market conditions have limited the number of
IPOs in Saudi Arabia in recent years but the trend seems to be
reviving amid a 30-percent stock rally since late last year
prompted by hopes of Tadawul opening up to foreign investors.
Sentiment was boosted last year by a 400 billion riyals
($106.66 billion) populist spending package unveiled by the king
in a move to head off social unrest. This was seen as giving a
boost to infrastructure and property companies in particular.
Turnover on the bourse has recently spiked to levels not
seen since 2007 as Saudi retail investors shifted funds from
other asset classes to equities, with small-cap stocks being
targeted for the bulk of speculative trading.
Construction Products Holding Co (CPC), a manufacturer of
building materials and a unit of Saudi Binladin Group, plans a
30 percent listing and has mandated the investment banking arms
of Gulf International Bank and Samba Financial Group
sources told Reuters in November.