Arabian Mills’ Tadawul IPO was fully covered within an hour of books opening for institutional investors yesterday, Bloomberg reports, citing unnamed sources it says are familiar with the matter. Bankers received orders on a price range of SAR 62-66 per share for the company’s market debut, which will see it take a 30% stake to market through a secondary share sale, according to the business information service.

What’s on the table? The flour milling company is allocating 100% of the offering to institutional investors. This can be reduced to 90% if there is sufficient enough demand from retail investors, who would then be allocated 10% of the sale. Each institutional investor can place orders for a minimum of 50k shares, and a maximum of 2.6 mn. While retail investors can subscribe for a minimum of 10 shares, and a maximum of 250k.

The timeline:

  • Bookbuilding for institutional investors will wrap this Thursday, 5 September. The deadline for subscription is Sunday, 15 September.
  • The subscription period for retail investors runs from Wednesday, 18 September to Thursday, 19 September.
  • Final offer allocation: Thursday, 26 September.
  • Refund of excess subscriptions: Thursday, 3 October.

Market cap + proceeds: At the top of the range, the selling price would give the company a market cap of SAR 3.4 bn at listing, and allow it to reel in SAR 1 bn in proceeds. The offering proceeds, after deducting estimated offering expenses of SAR 33 mn, will be distributed among the selling shareholders in proportion to the number of shares each sells.

ADVISORS- Our friends at HSBC Saudi Arabia are acting as the sole financial advisor, global coordinator, bookrunner, underwriter, and lead manager on the transaction, while Baker McKenzie is counsel, PwC is financial due diligence advisor, EY is auditor, and Euromonitor International is market consultant. Meanwhile, Alrajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi are the receiving agents.

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