Al-Saif Stores for Development & Investment Company (Alsaif Gallery), a leading Saudi retailer, has set the final offer price of its IPO at SR115 ($30.6) per share with a coverage ratio amounting to 1,550%.

 

Announcing the completion of the book-building process for the institutional tranche subscribed to the offered shares the firm said one million and fifty thousand (1,050,000) ordinary shares, representing 10% of the total shares offered for subscription, will be allocated to retail investors as a maximum.

 

The participating parties have subscribed to the offered shares in full, as ten million five hundred thousand (10,500,000) ordinary shares were allocated to them, representing 100% of the total shares offered for subscription as a first stage.

 

Retail investors

The offering for retail investors will begin on Monday December 5, 2022 and conclude on Tuesday December 6, 2022.

 

On September 28, 2022, the Capital Market Authority (CMA) approved the company’s application for the offering of 10,500,000 shares, representing 30% of the company’s issued share capital, by way of a sale of existing shares by the company’s current shareholders.

 

The company has appointed Saudi Fransi Capital to act as Financial Advisor, Bookrunner, Underwriter and Lead Manager.

 

Receiving agents

Banque Saudi Fransi and Saudi National Bank have been appointed as receiving agents (collectively, the Receiving Agents).

 

The offering will be restricted to the following two groups of subscribers:

 

Tranche A

Participating Parties: This tranche includes the parties entitled to participate in the Book Building process as per the Instructions for Book Building Process and Allocation Methods in Initial Public Offerings (IPOs) issued by the CMA. 

 

The number of shares to be provisionally allocated to the Participating Parties is 10,500,000 shares representing 100% of the total number of Offer Shares. The final allocation will take place after the end of the Retail Investors’ (as defined in Tranche B below) subscription period. In case of sufficient demand and in the case that Retail Investors subscribe to all of the Offer Shares allocated thereto, the Bookrunner shall have the right to reduce the number of Offer Shares allocated to Participating Parties to a minimum of 9,450,000 shares, representing ninety percent (90%) of the total Offer Shares. 

 

The number and percentage of the Offer Shares allocated to the Participating Parties shall be determined by the Financial Advisor in consultation with the company, using the discretionary allocation mechanism.

 

Tranche B

Retail Investors: This tranche comprises Saudi Arabian nationals, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi individual, who can subscribe in her name or in the names of her minor children for her benefit, provided that she proves that she is divorced or widowed and the mother of her minor children, as well as any non-Saudi natural person residing in the kingdom, or citizens of GCC states who have a bank account with the Receiving Agents and are entitled to open an investment account. 

 

Any subscription of a person in the name of their divorcee shall be deemed null and void and if it is proven that a transaction of this nature has occurred, the law shall be applied against the applicant. If a duplicate subscription is made, the second subscription will be deemed null and void and only the first subscription will be considered. A maximum of 1,050,000 Offer Shares shall be allocated to Individual Subscribers, equivalent to 10% of the total Offer Shares. If Individual Subscribers do not subscribe to the full number of Offer Shares allocated thereto, the Financial Advisor has the right to reduce the number of shares allocated to Individual Subscribers in accordance with the number of shares subscribed for by them.-- TradeArabia News Service