New Saudi GSM Network Announces its Brandname

Saudi Arabia's second GSM network, Etihad Etisalat has said that it will launch with the brand-name, Mobily. The company has received an enthusiastic welcome from the Saudi people, with investors particularly appreciative. Its initial public offering (IPO) was a historic success and its share value soared by 750% shortly after listing.

Sheikh Abdulaziz Al-Sughayer, Etihad Etisalat's Chairman, stressed the company's commitment to supporting and contributing to the Saudi economy by providing maximum job opportunities for Saudi nationals and investing in the Kingdom's communications infrastructure by using Saudi contractors and training up a young Saudi workforce.

Engineer Khaled Al-Kaf, Etihad Etisalat's CEO and Managing Director, said Mobily's launch as the official brand for the company's products and services in the Kingdom gave its marketing a strong focus. He said: "Mobily represents our commitment to the Saudi market and consumers through values aiming to provide the best standard of mobile services and products to match the aspirations and life style of the Saudi people."

Saudi public and private investors together own 65% of Etihad Etisalat. Key Saudi investors who have acquired 45% of the company's stocks include the General Organization for Social Insurance (15%), Al Jomaih Holding Company (6%), Abdulaziz Al-Sughayer Commercial Investments Company (6%), Rana Investment Company (6%), Abdullah & Said M.O. BinZaqr Company (6%), and Riyadh Cables Company Group (6%).

The company presented an additional 20% of its shares for general subscription, giving an opportunity to Saudi citizens to invest. The share subscription attracted unprecedented interest from Saudi investors and the IPO was oversubscribed more than 51 times. Emirates Telecommunication Company owns the remaining 35% of the company's stock. In the third year of Etihad Etisalat's formation, an additional 20% of shares will be offered to the Saudi public which will further increase the holding of the Saudis in the company."

Posted to the site on 14th February 2005