Monday 25 May 2020

Saudi Arabia’s Arabian Centres completes IPO

RIYADH, May 14, 2019

Saudi Arabia-based Arabian Centres Company has announced the completion of its initial public offering (IPO) of shares with the conclusion of the retail offering of 5,701,670 shares at the IPO price of SR26 ($6.9) per share.

Following the completion of the institutional book building process, the one day retail offering took place on May 9, 2019. The retail offering saw 26,476 individual investors subscribe for the shares which represented 6 per cent of the offer shares.

The retail offering followed the completion of the institutional book building process. The book building process generated an order book of SR3.1 billion and resulted in a subscription of 126 per cent of the offer shares as per the following breakdown:

•    Public Funds, Private Funds and Discretionary Portfolios 57.1 per cent;
•    Non-KSA investors (including GCC investors, QFIs and non-resident investors through swap agreements) 16.7 per cent; and
•    Others (including government institutions, private companies, financial institutions and authorized persons) 26.1 per cent.

Based on the results of the retail offering, the shares allocated to institutional investors will be scaled back to 89,298,330shares excluding the purchase option, representing 94.0 per cent of the offer shares. Final allocations and refunds (if any) will be processed on 14 May 2019.

Confirmation of offer details

•    The price for the Offering has been set at SR26 per share, implying a market capitalisation on admission of SR12.4 billion.
•    The Offering includes a total of 95,000,000 shares comprised of 65,000,000 existing shares to be sold by the current shareholders and 30,000,000 new shares to be issued by the company by way of a capital increase (together the offer shares).
•    The Offering size is SR2.5 billion excluding the purchase option and total offering size is SR2.8 billion including 12,825,000 Over-allotment shares that have been allocated pursuant to the purchase option.
•    Immediately following admission, the Company is expected to have a free float of 20 per cent of the Company’s enlarged issued share capital (prior to any exercise of the Purchase Option or 22.7 per cent in the event of full exercise of the purchase option. – TradeArabia News Service


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