Americana Restaurants International, the largest out-of-home dining and quick service restaurant operator in the Middle East & North Africa and Kazakhstan, has announced the offer price range and opening of bookbuilding and the subscription period for its Initial Public Offering (IPO). 

 

The offering will be conducted through a concurrent dual listing process on the Abu Dhabi Securities Exchange (ADX) and the Saudi Stock Exchange.

 

The offer price range has been set between AED2.50/SR2.55 to AED2.62/SR 2.68 per share, implying an equity value for the group of $5.73 billion to $6.01 billion (equivalent to AED21.06 billion to AED22.07 billion or SR21.48 billion to SR22.58 billion). The final offer price is expected to be announced on November 23, 2022. Admission of the shares to trading on ADX and the Saudi Exchange is expected to be on December 6, 2022, subject to receiving all required regulatory approvals.

 

The subscription period opens today (November 14) and will continue until November 21 for individuals and other investors in the UAE and Saudi Arabia; and until November 22 for the offering to qualified institutional investors in a number of countries, including the UAE and Saudi Arabia. 

 

It is intended that 5% of the total offering will be allocated to the UAE Retail Offer, up to 10% will be allocated to the KSA Retail Offer and 85% will be allocated to the Institutional Offer. 

 

The selling shareholder and the company reserve the right to increase the size of the UAE Retail Offer and decrease the size of the Institutional Offer at any time prior to the end of the subscription period at their sole discretion, subject to applicable laws and the approval of the relevant authorities in the UAE, said the statement.

 

The selling shareholder (Adeptio AD Investments) expects to sell 2,527,089,930 existing ordinary shares in the offering, each with a nominal value of AED0.073 (equivalent to SR 0.075), representing 30% of the company’s issued share capital. The net proceeds of the offering will be received by the selling shareholder. 

 

Prior to the completion of the offering, the selling shareholder owned 96.03% of the total share capital of Americana Restaurants and is the jointly-held investment vehicle of Mohamed Ali Rashed Alabbar, founder of Emaar Properties, and Saudi Arabia’s Public Investment Fund (PIF). Shares held by the selling shareholder following completion of the offering shall be subject to a lock-up period which starts on the date of admission and ends six months thereafter.

 

Assuming all the offer shares are sold, the size of the offering will be $1.72 billion to $1.80 billion (equivalent to AED6.32 billion to AED6.62 billion or SR6.44 billion to SR6.77 billion).

 

The Final Offer Price will be determined through a bookbuilding process, starting today, and is expected to be announced on November 23. The completion of the offering and admission is currently expected to take place on December 6 subject to market conditions and obtaining relevant regulatory approvals in the UAE and Saudi Arabia, including approval of Admission to listing and trading on ADX and the Saudi Exchange. - TradeArabia News Service