The retail component of Altaiseer Group Talco Industrial Company’s (Talco) IPO on Tadawul’s main market was 17.4x oversubscribed, financial advisor Alinma Investment said in a statement yesterday. The company offered 1.2 mn shares (equivalent to 10% of the total offering) to retail investors. Talco had priced its IPO at SAR 43 per share after the institutional tranche of the sale closed last month 68.5x oversubscribed.

The specifics: Each subscriber received one share, with the remaining shares allocated on a pro-rata basis based on investor demand, resulting in an average allocation factor of 2.5%, the statement read. Remaining shares were distributed individually, starting with the investors who had the highest demand, it added.

BACKGROUND- Talco is taking a 30% stake (12 mn shares) to the main market in a secondary share sale, allocating 90% of its stake to institutional investors, while retail investors have the remaining 10%. Talco’s nine major shareholders reduced their combined stake to 65.09% from 92.99%.

ADVISORS- Alinma Investment is quarterbacking the transaction as financial advisor, lead manager, bookrunner and underwriter, while Stat Law Firm is acting as counsel. PwC is Talco’s financial due diligence advisor. Front & Sullivan is serving as market consultant, while KPMG is acting as the company’s auditor. The receiving agents are Alinma Bank, Al Rajhi Bank, and Riyad Bank.

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