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TELECOMMUNICATIONEtihad AtheebAlso known asATHEEBPriceSR17.9Pricing / Valuation as on May 27, 2009Mkt capSR1.8bn ($478.0mn)Sh. outstanding100.0mnKey statistics52 week range H/L (SR) 20.1/13.8Avg daily turnover (mn) SR US$3m N/A N/A12m N/A N/ARaw Beta 6m 3yrNA NAReuters7040.SEBloombergEAT ABPrice perform (%) 1M 3M 12MAbsolute (%) 3 N/A N/AMarket (%) 6 32 (39)Sector (%) 4 20 (27)Website: www.go.com.saValuation multiples2006 2007 2008P/E (x) N/A N/A N/AP/B (x) N/A N/A N/AP/Sales (x) N/A N/A N/ADiv yield (%) N/A N/A N/AEtihad Atheeb Telecommunications Company (ATHEEB), a joint venture betweenKSA-based Atheeb Trading Co., Al-Nahla Trading Co. and Traco Group and BahrainTelecom, was established in 2008 to provide fixed and wireless telecommunicationsservices in KSA.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn - - - - - -EBITDA SRmn - - - - - -Net Income SRmn - - - - - -Assets SRmn - - - - - -Equity SRmn - - - - - -Total Debt SRmn - - - - - -Cash & Equiv SRmn - - - - - -EBITDA Mgn % - - - - - -Net Mgn % - - - - - -ROE % - - - - - -ROA % - - - - - -Div Payout % - - - - - -EPS SR - - - - - -BVPS SR - - - - - -Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.12MSCI Saudi (domestic – mid cap)Free float (%)Free float 30.50Relative share price perf.6,400215,800195,200174,600154,0001321-M ar 22-Apr 26-M ayTASIAtheeb (RHS)Top 5 shareholders (%)Atheeb Group 16.1Bahrain Telecom 15.0Al Nahla Group 13.7Traco Group 5.8General Orgn. For Social Insurance 5.0Source: NCBC ResearchSource: Company, NCBC Research• Business brief: ATHEEB was set up to build, operate, and maintain the second fixedline telecommunication network in KSA. The company aims to provide innovative andhigh technology solutions, such as video services, Internet telephony, and broadbandinternet, apart from voice telephone communications and data services. ATHEEBobtained a fixed telephony license for SR5mn and a 3.5GHz frequency spectrum forSR520mn. Batelco is likely to provide technical services and expertise to ATHEEB.The company plans to launch commercial services in 2009.• Financials: N.A.• Recent developments: In May 2009, Wipro Ltd signed a partnership agreement withATHEEB for deploying an end-to-end IT solutions and the underlying infrastructurecomponents. In April 2009, the Communications and Information TechnologyCommission awarded ATHEEB license for fixed-line telecom operations in Saudi. InJanuary 2009, ATHEEB floated 30mn shares at SR10 each in an IPO, which wasoversubscribed by 3.5 times. In January 2009, it signed a SR200mn contract withEtihad Etisalat Co. to expand its data transmission capacity. In March 2008, ATHEEBsigned contracts worth USD333mn with Motorola (for WiMax technology), ChinabasedZTE Corp. (for Core Network solutions) and India-based Wipro (for IT services)for executing the first phase of its network infrastructure plan in KSA.JUNE 2009 ETIHAD ATHEEB 181