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United International Holding Company (UIHC) priced its IPO at the top of its indicative range at SAR 132 apiece, according to a statement (pdf). The final pricing will see selling shareholders lock in SAR 990 mn in total proceeds, giving the firm a market cap of SAR 3.3 bn at listing. The institutional tranche of the offering was sold out within minutes of opening last month, with investors submitting SAR 131 bn in bids, making the offering 132x oversubscribed, Bloomberg reports.
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REFRESHER- The financial services arm of United Electronics Company (eXtra) is taking a 30% stake to Tadawul’s main market. The offering will see eXtra pocket all of the proceeds after an estimated SAR 37 mn are put aside to cover IPO-related expenses, and SAR 190 mn go to repaying some of eXtra’s debt.
The offering has three cornerstone investors: UIHC and eXtra had secured binding commitments from Zamil Group Investment, AK Al Muhaidib & Sons, and Tawuniya, with each cornerstone investor subscribing to 390.6k shares. Collectively, the cornerstone investors have committed to snapping up 1.2 mn shares at the final IPO price, representing 4.7% of UIHC’s share capital and 15.6% of the offering.
What’s next? The two-day retail subscription kicks off on Tuesday, 19 November with the tranche allocated 10% of the offering. Individual investors are capped at a maximum of 250k shares, and a minimum of 10 shares each. The final allocation of shares is set to take place no later than Monday, 25 November. Excess funds, if any, will be refunded by Thursday, 28 November.
ADVISORS- Our friends at HSBC Saudi Arabia are quarterbacking the transaction as sole financial advisor and lead manager, while also acting as joint bookrunners and underwriters with the good folks at EFG Hermes KSA. The Law Firm of Salah Al Hejailan will provide counsel to the issuer, with Freshfields Bruckhaus Deringer providing counsel to the issuer outside of the Kingdom. Meanwhile, EY was appointed as financial due diligence advisor, and PwC as auditor. Receiving against include, SAB Invest, Al Rajhi Capital, BSF Capital, Alinma Investment, and Riyad Capital, among others.
