UIHC’s retail offering was 9.1x oversubscribed

UIHC wraps retail tranche of Tadawul IPO with strong investor demand: The United International Holding Company (UIHC) — which owns and operates the Tas’heel brand name — closed the retail tranche of its IPO with a 9.1x oversubscription rate after booking SAR 903.5 mn in orders from 214.9k investors, according to a statement (pdf). The retail offering saw subscribers put in orders for 750k shares — equivalent to 10% of all shares on offer — with the shares going at SAR 132 apiece. The financial services arm of United Electronics Company (eXtra) is taking a 30% stake to Tadawul’s main market.

Individual subscribers will receive a minimum of 3 shares each, while remaining shares will be allocated on a pro rata basis at an average allocation factor of 1.6974%.

REMEMBER- Institutional investors booked 90% of the IPO last month in an offering that was 132x oversubscribed and sold out within minutes of opening. Strong investor demand priced UIHC’s shares at the top of the guidance range at SAR 132 apiece, giving it a market cap of SAR 3.3 bn upon listing and generating SAR 990 mn in proceeds.

What’s next? The final allocation of shares wrapped up yesterday and shares will be listed on Tadawul’s main market after the company crosses the t’s and dots the i’s with the Capital Market Authority and Tadawul.

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.