Riyadh – Arabian Internet and Communications Services Company (“solutions by stc” or “The Company”), the leading ICT services provider in Saudi Arabia (“KSA”) along with HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital Company, as joint financial advisors, announce the successful completion of its retail offering process for its Initial Public Offering (the “IPO” or the “Offering”).
The subscription period for Individual Investors Tranche, comprising 2,400,000 shares representing 10% of the total offering at a final Offer Price of SAR 151, commenced on Sunday 19 September 2021 and ended on Tuesday 21 September 2021.
The Individual Investors Tranche witnessed participation by 1,042,090 subscribers and was 2365.0% oversubscribed with a total demand of SAR 8.6bn. Each retail subscriber will receive a minimum of 2 shares, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 0.5776%.
The offering to Individual Investors followed the Institutional Book-building process which registered an IPO order book that was 13004.7% oversubscribed at SAR 471 billion, as follows:
- Saudi Corporates (including private companies, listed companies, insurance companies and Capital Markets Institutions) with a coverage ratio of 9507.6%
- Mutual Funds, Private Funds and DPMs with a coverage ratio of 2395.9%
- Foreign investors (including GCC, QFIs and SWAP investors) with a coverage level of 908.7%
- Government Related Entities with a coverage ratio of 41.4%
- Other investors with a coverage level of 151.1%
Based on the results of the offering to Individual Investors, the shares allocated to institutional investors will be scaled back to (21,600,000) Offer Shares, representing 90% of the total Offer Shares. Refunds will be processed no later than 29 September 2021.
Offering Details:
- The Final Offer Price for the Offering has been set at SAR 151 per share, implying a market capitalization at listing of SAR 18.1 billion (USD 4.8 billion)
- The Total Offering size is SAR 3,624 million (USD 966 million)
- The Offering is comprised of 24,000,000 existing Shares to be sold by the current shareholders
- 100% of the Offer Shares have been allocated to the institutional investors having participated in the book building process (“Institutional Investors”). This was reduced to twenty-one million, six hundred thousand (21,600,000) Offer Shares, representing 90% of the total Offer Shares. The final number of Offer Shares allocated to the Institutional Investors will be adjusted accordingly.
- Immediately following listing, the Company is expected to have a free float of 20% of the Shares
- With respect to the Offering, the Company appointed HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital as financial advisors, underwriters and bookrunners (together, the “Bookrunners” or “Financial Advisors”). The Company also appointed HSBC Saudi Arabia to act as Lead Manager
For more information on the prospectus, please visit the Capital Market Authority website www.cma.org.sa, and solutions by stc website https://solutions.com.sa/ipo/.
© Press Release 2021
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