{"id":86366,"date":"2024-05-21T00:00:00","date_gmt":"2024-05-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/21\/talco-could-raise-up-to-sar-516-mn-from-its-tadawul-ipo\/"},"modified":"2024-05-21T00:00:00","modified_gmt":"2024-05-21T00:00:00","slug":"talco-could-raise-up-to-sar-516-mn-from-its-tadawul-ipo","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/21\/talco-could-raise-up-to-sar-516-mn-from-its-tadawul-ipo\/","title":{"rendered":"Talco could raise up to SAR 516 mn from its Tadawul IPO"},"content":{"rendered":"

Aluminum products maker <\/strong>Al Taiseer Group Talco Industrial (Talco) is <\/strong>guiding on <\/strong>a price range of SAR 40-43 <\/strong>per share for its IPO on Tadawul\u2019s main market<\/strong>, according to a filing to the exchange<\/a>. The company is taking a 30% stake to market in a secondary share sale<\/a>. At the top of the range, the pricing would see it raise up to SAR 516 mn in IPO proceeds, and give it a market cap of up to SAR 1.7 bn post-listing, according to our calculations.<\/p>\n

Institutional investors have until this Thursday, 23 May to place their orders<\/strong>, with each able to subscribe to a maximum of 2 mn shares and a minimum of 50k shares, according to the prospectus (pdf)<\/a>. The book-building process for retail investors will run for a two-day period starting Tuesday, 28 May, during which they can subscribe to a maximum of 250k shares and a minimum of 10 shares each. The final share allocation is expected to happen by Sunday, 2 June. <\/p>\n

Use of proceeds: <\/strong>Talco\u2019s selling shareholders will take the transaction\u2019s proceeds home after covering transaction related-expenses \u2014 estimated at SAR 16 mn. All the proceeds will be divided between the selling shareholders on a pro rata basis.<\/p>\n

The pitch:<\/strong> Talco is a leader in the industry, with a footprint in 26 countries across the GCC, MENA region and East Asia, Europe, US, and Australia. Several expansions throughout the years helped bring its aluminum production capacity to 60k MT as of June 2023. It currently operates two factories in Riyadh and one in Jeddah.<\/p>\n

ADVISORS- Alinma Investment<\/strong> is quarterbacking the transaction as financial advisor, lead manager, bookrunner and underwriter, while Stat Law Firm<\/strong> is acting as counsel. PwC<\/strong> is Talco\u2019s financial due diligence advisor. Front & Sullivan<\/strong> is serving as market consultant, while KPMG is acting as the company\u2019s auditor. The receiving agents are Alinma Bank, Al Rajhi Bank, and Riyad Bank<\/strong>.<\/p>\n

SAUDI IPO PIPELINE AT A GLANCE-<\/p>\n

Among the transactions now in the market <\/strong>or in the pipeline:<\/p>\n