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Aluminum products maker Al Taiseer Group Talco Industrial (Talco) is guiding on a price range of SAR 40-43 per share for its IPO on Tadawul’s main market, according to a filing to the exchange. The company is taking a 30% stake to market in a secondary share sale. At the top of the range, the pricing would see it raise up to SAR 516 mn in IPO proceeds, and give it a market cap of up to SAR 1.7 bn post-listing, according to our calculations.
Institutional investors have until this Thursday, 23 May to place their orders, with each able to subscribe to a maximum of 2 mn shares and a minimum of 50k shares, according to the prospectus (pdf). The book-building process for retail investors will run for a two-day period starting Tuesday, 28 May, during which they can subscribe to a maximum of 250k shares and a minimum of 10 shares each. The final share allocation is expected to happen by Sunday, 2 June.
Use of proceeds: Talco’s selling shareholders will take the transaction’s proceeds home after covering transaction related-expenses — estimated at SAR 16 mn. All the proceeds will be divided between the selling shareholders on a pro rata basis.
The pitch: Talco is a leader in the industry, with a footprint in 26 countries across the GCC, MENA region and East Asia, Europe, US, and Australia. Several expansions throughout the years helped bring its aluminum production capacity to 60k MT as of June 2023. It currently operates two factories in Riyadh and one in Jeddah.
ADVISORS- Alinma Investment is quarterbacking the transaction as financial advisor, lead manager, bookrunner and underwriter, while Stat Law Firm is acting as counsel. PwC is Talco’s financial due diligence advisor. Front & Sullivan is serving as market consultant, while KPMG is acting as the company’s auditor. The receiving agents are Alinma Bank, Al Rajhi Bank, and Riyad Bank.
SAUDI IPO PIPELINE AT A GLANCE-
Among the transactions now in the market or in the pipeline:
- Fakeeh Care Group has priced its IPO at the top range after strong demand from institutional investors as it looks to become the largest IPO so far this year;
- Fintech startup Rasan is set to sell a 30% stake, with subscription period for retail investors kicking-off on Thursday, 29 May;
- Labor agency Saudi Manpower Company (Smasco) is selling a 30% stake and has priced the IPO at the top of the range;
- Water treatment outfit Miahona has priced its IPO at the top of the range after recording strong investor appetite;
- Nupco — a unit of the PIF — has reportedly tapped Rothschild & Co as financial advisor for its potential Tadawul IPO;
- Budget airline Flynas is reportedly looking to go public this year;
- PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital ;
- Hotels and resorts operator Boudl has filed to go public;
- Fourth Milling Company will list before the end of June;
- Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
- Hypermarket operator Lulu is said to be eyeing a dual listing on Tadawul and ADX;
- Aster DM Healthcare looks set to spin off its GCC assets and seek a dual listing on Tadawul and in the UAE.
