{"id":86598,"date":"2024-05-28T00:00:00","date_gmt":"2024-05-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/28\/fakeeh-care-miahona-closer-to-tadawul-listings\/"},"modified":"2024-05-28T00:00:00","modified_gmt":"2024-05-28T00:00:00","slug":"fakeeh-care-miahona-closer-to-tadawul-listings","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/28\/fakeeh-care-miahona-closer-to-tadawul-listings\/","title":{"rendered":"Fakeeh Care + Miahona closer to Tadawul listings"},"content":{"rendered":"

Two retail offerings wrap:<\/strong> Fakeeh Care and Miahona both closed the retail portion of their IPOs on Tadawul\u2019s main market yesterday, with each reporting a healthy subscription book.<\/p>\n

FAKEEH CARE-<\/p>\n

The retail tranche of healthcare provider Fakeeh Care\u2019s IPO was 14.5x oversubscribed<\/strong>, Argaam<\/a> reported, citing a statement from our friends at HSBC Saudi Arabia, which is the sole financial advisor and bookrunner. The final allocation of shares wrapped up yesterday with a minimum of three pieces per retail subscriber. <\/p>\n

REMEMBER-<\/strong> The institutional offering was 119x oversubscribed<\/a>, signaling strong investor appetite for the Riyadh-based healthcare provider\u2019s offering, which is set to become the largest IPO so far this year<\/a>. <\/p>\n

The IPO <\/strong>has lured<\/strong> in UAE\u2019s Adia:<\/strong> Abu Dhabi Investment Authority (Adia), the UAE\u2019s largest sovereign wealth fund, has emerged as a key buyer in the IPO with a cornerstone investment of 1.04 mn shares, according to a supplementary prospectus<\/a>. Alongside Olayan Saudi Investment \u2014 the other cornerstone investor \u2014 the two funds will together buy 1.99 mn shares out of a total of 4.98 mn shares on offer.<\/p>\n

What\u2019s next: <\/strong>Rump shares will be distributed proportionally among the subscribers based on the size of their demand compared to the total offering at an allotment ratio of 1.4%, according to Argaam. Fakeeh has yet to announce when trading will begin on its shares.<\/p>\n

Background: <\/strong>Fakeeh Care is taking a 21.5% stake to market<\/a> through an offering of both new and existing shares. The IPO was priced top of the range at SAR 57.5 per share<\/a>, giving the family business a market cap of 13.3 bn post-listing, with the offering set to reel in some SAR 2.9 bn in proceeds.<\/p>\n

ADVISORS- <\/strong>Our friends at HSBC<\/strong> are acting as sole financial adviser. HSBC<\/strong> is joint bookrunner together with our friends at EFG Hermes<\/strong> as well as ANB Capital<\/strong>. Moelis<\/strong> is advising the selling shareholders, while AlRajhi Bank, Saudi National Bank, Arab National Bank, SAB, Alinma Bank and Bank Aljazira<\/strong> are serving as receiving banks.<\/p>\n

MIAHONA-<\/p>\n

Water treatment outfit Miahona\u2019s retail offering was 6.1x oversubscribed<\/strong>, with retail investors set to secure a minimum of 10 shares each, lead manager Saudi Fransi Capital said in a disclosure to Tadawul<\/a>. A strong demand from retail investors will see the total offering for institutional investors fall to 80% despite it being 170x covered<\/a>.<\/p>\n

What\u2019s next? <\/strong>Rump shares will be allocated to subscribers on a pro-rata basis to fulfill the remaining demand, with an allocation ratio of 11.6% for every subscribed share, according to the disclosure. Miahona\u2019s date of listing is yet to be announced. <\/p>\n

Background: <\/strong>The sole owner of Miahona \u2014 Vision Invest \u2014 is selling a 30% stake<\/a>on<\/a>Tadawul\u2019s main<\/a>marke<\/a> t in a secondary share sale. The IPO was priced top<\/a>of the range<\/a> at SAR 11.5 per share, valuing the IPO at SAR 555.5 mn, and giving the company a market cap of SAR 1.85 bn post-listing. The selling shareholder will take home the proceeds from the offering after paying an estimated SAR 28 mn in fees associated with the transaction.<\/p>\n

ADVISORS- <\/strong>Our friends at EFG Hermes KSA<\/strong> and Saudi Fransi Capital (SFC)<\/strong> are quarterbacking the transaction as financial advisor, bookrunner, and underwriter. SFC is also separately acting as the lead manager. SFC<\/strong> and Riyad Bank<\/strong> are receiving agents. Latham & Watkins<\/strong> is acting as legal counsel, while PwC <\/strong>is financial due diligence advisor, KPMG<\/strong> are serving as auditors, and Arthur D. Little<\/strong> as market consultant.<\/p>\n

A RUNDOWN OF THE SAUDI IPO PIPELINE-<\/p>\n

Other transactions that are now in the market or expected soon:<\/strong><\/p>\n