Saudi-based Power and Water Utility Company for Jubail and Yanbu (Marafiq) has set the final price of its initial public offering (IPO) on the Saudi bourse Tadawul at SR46 per share, implying a market capitalisation of SR11.5 billion ($3.1 billion).

 

Announcing the successful completion of the final allotment of the offer shares, Marafiq said it has allocated a minimum of 10 shares to each individual investor. The remaining shares have been allocated on a pro-rata basis based on demand size to the remaining demand with an allocation factor of 4.91%.

 

Following the completion of the institutional book-building process, the individual investors offering took place from October 26 to 30. 

 

The retail offering witnessed 1.59 million subscribers invest SR6.37 billion at the IPO price of SR46 per share, indicating an individual investors’ tranche coverage of 631.57%, said the statement from Marafiq. 

 

The number of shares that were allocated to the individual investors’ tranche was seen at 21,928,350 shares, representing 30% of the total offering.

 

According to Marafiq, the total offering size is SR3.36 billion ($897 million) - comprising 73.09 million shares, representing 29.24% of the existing ordinary shares of the company, to be sold by the current four substantial shareholders.

 

The Saudi utility said immediately after the listing, it is expected to have a free float of 30% of the company’s issued share capital. HSBC Saudi Arabia and Riyad Capital will be acting as joint financial advisors.