Saudi Stock Exchange Sets IPO Price at Top End of Range
(Bloomberg) -- Saudi Tadawul Group Holding set the final price of its initial public offering at the top end of the range, giving the Riyadh-based stock exchange a valuation of 12.6 billion riyals ($3.4 billion).
Tadawul set the price at 105 riyals per share after an institutional book-building process, according to a statement. The IPO was 121 times oversubscribed and the orderbook amounted to 458 billion riyals.
At that price, the share sale will raise as much as $1 billion for the exchange’s sole shareholder, the Public Investment Fund, by selling a 30% stake. Tadawul had set the price range at 95 riyals to 105 riyals a share for the IPO.
- IPO opens for retail subscription: Nov. 30 to Dec. 2
- A maximum of 10.8 million shares will be allocated to individual investors
The offering comes amid an IPO boom, with companies around the world raising a record of more than $600 billion this year. Against that backdrop, Saudi Arabia has been among the leaders in the Middle East, listing private and family-owned firms as well as companies such as ACWA Power International and Saudi Telecom Co.’s internet-services unit.
Tadawul’s IPO has been on the cards since at least 2016, when it hired HSBC Holdings Plc as an adviser. It put the offering on hold while the exchange went through a process of increasing access for foreign investors, and then staged the listing of Aramco in 2019, the largest ever.
The process was resumed earlier this year and Tadawul replaced HSBC with Citigroup Inc., JPMorgan Chase & Co., and SNB Capital as financial advisers and global coordinators. It’s set to be the biggest offering in the exchanges sector since Euronext’s $1.2 billion IPO in 2014.
The benchmark Tadawul All Share Index has gained 24% this year.
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