Sign in
Water treatment outfit Miahona’s retail offering was 6.1x oversubscribed, with retail investors set to secure a minimum of 10 shares each, lead manager Saudi Fransi Capital said in a disclosure to Tadawul. A strong demand from retail investors will see the total offering for institutional investors fall to 80% despite it being 170x covered.
What’s next? Rump shares will be allocated to subscribers on a pro-rata basis to fulfill the remaining demand, with an allocation ratio of 11.6% for every subscribed share, according to the disclosure. Miahona’s date of listing is yet to be announced.
Background: The sole owner of Miahona — Vision Invest — is selling a 30% stake on Tadawul’s main marke t in a secondary share sale. The IPO was priced top of the range at SAR 11.5 per share, valuing the IPO at SAR 555.5 mn, and giving the company a market cap of SAR 1.85 bn post-listing. 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 and Saudi Fransi Capital (SFC) are quarterbacking the transaction as financial advisor, bookrunner, and underwriter. SFC 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.
