Finally, you might want to read this:
Riyadh : Thousands of Saudis want to go to the UAE to buy shares in Dana Gas, a natural gas resource company, leading to sold-out flights to Dubai.
The reservation department of Saudi Arabian Airlines said no seats were available on its flights to Dubai from Jeddah and Dammam before September 29 and from Riyadh before September 30. The airline, however, has no plan to operate additional flights to Dubai because it would affect services to other destinations, an airline official said. Saudi Arabian Airlines operates four flights to Dubai from Jeddah, Riyadh and Dammam, carrying more than 1,000 passengers every day.
"During the last three days, we operated an additional flight daily carrying 300 passengers," the airline official said. "We operate flights to 86 domestic and international destinations. It is not fair to operate more flights to a particular city, ignoring other destinations."
The rush to catch flights to Dubai came after Dana Gas allowed all Gulf citizens to subscribe to its shares during the initial public offering, which opened on September 20. In the largest initial public offering ever in the UAE, Dana Gas is offering shares worth Dh2.06 billion, or 34.33 per cent of the company's capital.
Some of the subscribers told Gulf News that procedures were very easy. They said UAE banks allowed those who could not travel to the emirate to open their accounts with them on the basis of attested authorisation letters and Saudi passport copies. But many Saudis have requested the company to allow them to subscribe to its shares through Saudi banks or branches of UAE banks in the kingdom as Saudi businessmen figure prominently in the list of founders after UAE nationals.
As many as 1,688 Saudis have received investor numbers from Dubai in the past few days, taking the number of Saudi investors to 23,271 out of 268,364. [link]
The picture above from Emirates Today newspaper:
Mass confusion surrounded the 8am opening of a branch of the Emirates Bank yesterday as about 500 Saudi Arabian men attempted to snap up subscriptions for one of the UAE’s largest initial public offering.
“When I came to work this morning at 7.30am, there were as many as 500 men lined up,” said a senior employee from the head office of Emirates Bank who had been assigned to the Mankhool Road branch.
Policemen were guarding the doors of the bank and only letting in a few customers at a time.
“Yesterday we did not guard the doors and the whole bank was filled with people,” said Nabeela Al Shehhi, a female customer service employee who was processing applications.
“Some customers were shouting and pushing our desks. If there had been no men with us, we would not have been able to deal with the situation.” A senior branch employee said: “We had people swearing at us and fighting among themselves yesterday before we were forced to call the police.
“It has been like this for the past three days, but because of the weekend, today is the busiest day we have seen so far. We expect the same amount of traffic until October 3, when the IPO closes,” he said.
It was confirmed that the branch ran out of application forms two hours after opening for business yesterday. [edited]
And in the middle of all this frenzy no one's talking about the negative rumors that the IPO itself might be in trouble. The press mentioned it just once and after that no further coverage.
some fears and questions remain about the IPO launch with the recent disagreement that erupted between Crescent Petroleum Company, one of the major investors in Dana Gas, and the Iranian gas supplier, Iranian National Gas Company.Sorry I don't have a source for the above, it was emailed to me earlier this week.
Dana Gas' newly acquired assets and facilities will initially be supplied with gas by Crescent Petroleum, which is importing substantial gas volumes from Iran to supplement and underpin domestic gas resources. According to MEES, significant volume will be imported from Iran under a 25-year supply contract.
The Iranian National Gas Company recently demanded from Crescent Petroleum Company to increase the previously set and agreed upon prices due to the big hike in the prices of global energy sources.
An informed source, who asked not to be identified, said Crescent Petroleum Company refused in a written response any possible adjustments to the previously agreed prices; therefore, Iranian company threatened to resort to arbitration.
The source pointed that any price hike will be a major dilemma for Dana Gas in fulfilling its previously signed agreements with UAE end users.
Mohammad Bin Dha'en Al Hamili, UAE Minister of Energy, has sent a letter to Crescent Petroleum to inquire about the company's ability to fulfill its commitments to end-uses and provide gas to Federal Electricity and Water Authority (FEWA). However, Crescent Petroleum did not provide a reply so far, which increases suspicion about the situation inside the company.