Cherry Trading prices main market IPO at SAR 28 per share

Cherry Trading priced its Tadawul IPO at SAR 28 per share, the top of therange it wasguiding on, after its institutional offering was 85.6x oversubscribed, according to a bourse filing. The offer price will see the car lessor raise SAR 252 mn from the IPO, implying a market cap of SAR 840 mn at listing, according to our calculations.

REFRESHER- This is a secondary offering, meaning selling shareholders will rake in all the proceeds from the sale of 9 mn existing shares (excluding some SAR 27 mn for IPO-related expenses).

What’s next? Some 20% of the shares on offer will be open to retail investors between 12-13 November, with final allocations due Wednesday, 19 November.

ADVISORS- Our friends at EFG Hermes KSA, along with BSF Capital, are quarterbacking the transaction as the financial advisors, bookrunners, and underwriters. Other advisors include Stat Law Firm, Zeyad Sameer Khoshaim Law Firm, PwC, Euromonitor International, and KPMG.

Receiving agents include Alinma Investment, Al Rajhi Capital, SNB Capital, Riyad Capital, Al Bilad Investment, Al Jazira Capital, Alistithmar Capital, Derayah Financial, ANB Capital, Yaqeen Capital, Al Khabeer Capital, Sab Invest, Saham Capital, GIB Capital, Musharaka Capital, and Awaed Alosool Capital.

ALSO IN THE PIPELINE-

• Almasar Education is yet to announce its final offer price but is currently guiding on a range of SAR 18.50-19.50;
• Coldchain manufacturer Consolidated Grunenfelder Saady Holding was cleared to list 30% of its shares on Tadawul’s main market;
• IT firm Ejada Systems, which missed its six-month IPO window, is set to resubmit an IPO application to the CMA;
• PIF-backed Saudi Global Ports, Tabreed District Cooling, Medical procurement firm Nupco, Riyad Capital, and BNPL platform Tabby are among companies that tapped banks for potential IPOs;
• F&B players Barns, Half Mn, Deemah, and Hashi Bashi are said to be sounding out banks for potential debuts on the main market;
• Almosafer is preparing for a public listing on Tadawul by late 2025 or early 2026;
• Alternative hospitality platform Gathern, local contractor Mutlaq Al Ghowairi Contracting (MGC), PIF-backed CloudKitchens, fast delivery app Ninja, Meal subscription startup Calo, Emkan Finance, and Tamweel Aloula are all said to be considering Tadawul IPOs.