KSA’s Miahona IPO could raise as much as SAR 555.5 mn

Institutional investors started placing orders in Riyadh-based Miahona’s IPO yesterday, kicking off the institutional subscription period. Bankers will wrap up the marketing of the institutional tranche this coming Thursday (2 May).

The IPO values the KSA water treatment company at as much as SAR 1.8 bn, according to Enterprise calculations, after advisors on the transaction announced an indicative price range of SAR 10.5-11.5 per share, they said in a statement to Tadawul. The guidance indicates the IPO could raise as much as SAR 555.5 mn.

What’s next: After the institutional subscription closes, bankers will set the offering’s final price, initiating a two-day subscription process for the retail tranche which is slated to start on Tuesday, 21 May, the statement reads. The final step before ringing the bell in the exchange involves refunding any excess subscription fees on Thursday, 30 May.

Background: The sole owner of Miahona — Vision Invest — will offload a 30% stake on main market Tadawul in secondary share sale, and its shares will remain locked up for six months from the first trading day, it said when it released its prospectus last week. The selling shareholder will take home the proceeds from the offering after paying an estimated SAR 28 mn in fees associated with the transaction.

ADVISORS- Our friends at EFG Hermes KSA are quarterbacking the transaction as financial advisor, bookrunner, and underwriter, along with Saudi Fransi Capital (SFC) which is also separately acting as the lead manager. SFC and Riyad Bank are receiving agents. Latham & Watkins is acting as legal counsel, while PwC is financial due diligence advisor, KPMG are serving as auditors, and Arthur D. Little as market consultant.