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IPO letter on wood block cubes on wooden table over modern office city tower, street, expressway and skyscraper, Initial public offering concept. Image used for illustrative purpose. Getty Images
Saudi poultry firm Arabian Company for Agricultural and Industrial Investment (Entaj) has reduced the number of shares allocated in the retail subscription for its IPO, which will list on the Main Market (Tadawul).
Based on the results, shares allocated to participating parties will be reduced to 8.1 million shares, representing 90% of the total shares.
The retail offering saw 499,021 individual investors place orders totalling 1.4 billion Saudi riyals ($373 million), reflecting a subscription coverage of 30.2 times for this tranche.
The number of shares allocated in the individual investors’ tranche were 900,000 offer shares, representing 10% of the total offering.
Entaj allocated a minimum of one share to each individual investor, with the remaining shares allocated on a pro-rata basis, based on the size of demand, with an average allocation factor of 1.5%.
The final offer price was set at SAR 50 per share, at top of the range, with books covered within hours of opening on 9 February, exceeding SAR 93 billion and representing a coverage of 208.4 times.
The market capitalisation implied is SAR 1.5 billion at listing.
Established in 2004 as the brand of Saudi’s Arabian Agricultural Services Company (ARASCO) to invest in agricultural activities in the kingdom, the company announced last month, its intention to proceed with an IPO on the Main Market (Tadawul), with a float of 9 million shares, representing 30% of the company’s total issued share capital.
SNB Capital Company has been appointed as lead manager, financial advisor, bookrunner, and underwriter.
A trading date is yet to be announced.
(Writing by Bindu Rai, editing by Seban Scaria)
