Finance & Capital Market

STG IPO individual tranche oversubscribed 442.5%

Saudi Tadawul Group Holding Company (STG) said that the individual subscribers tranche for its initial public offering (IPO) witnessed participation by 598,327 subscribers and was oversubscribed 442.53% with a total demand of SR5.02 billion ($1.33 billion).

The subscription period for individual subscribers tranche, comprising 10,800,000 shares which represent 30% of the total offer shares at a final offer price of SR 105, commenced on November 30, 2021 and ended on December 2, 2021.

Individual subscribers will each receive a minimum of 10 shares, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 11.5206%.

 Based on the results of the offering to individual subscribers, the shares allocated to institutional investors will be scaled back to 25,200,000 offer shares, representing 70% of the total offer shares.

Offering details:

•    The final offer price for the offering was set at SR105 per share, implying a market capitalization on the listing date of SR12.6 billion
•    The total offering size amounted to SR3.78 billion
•    The Offering comprised of a sale of thirty-six million (36,000,000) shares by the selling shareholder
•    100% of the offer shares were provisionally allocated to the institutional investors who participated in the bookbuilding process (Institutional Investors). This has been reduced to 25,200,000 offer shares, representing 70% of the total offer shares. The final number of offer shares allocated to the institutional subscribers has been adjusted based on subscriptions from individual subscribers.
•    Immediately following the listing, the company will have a free float of 30% of the share capital of the Company

STG appointed SNB Capital Company, Citigroup Saudi Arabia and J. P. Morgan Saudi Arabia Company as Financial Advisors, Joint Global Coordinators, Underwriters and Bookrunners.  The company also appointed SNB Capital Company to act as Lead Manager. – TradeArabia News Service