Sign in
The book-building process for Miahona’s IPO on main market Tadawul was 170x covered, speaking to strong appetite from institutional investors for the Riyadh-based water treatment company, according to a statement (pdf). Bankers booked SAR 94.4 bn in orders, giving them confidence to price the offering top of the range at SAR 11.50 per share, valuing the IPO at just SAR 555.5 mn. Miahona will make its market debut with a market cap of SAR 1.85 bn.
What’s next: The two-day subscription process for the retail tranche is slated to start on Tuesday, 21 May.
Background: The sole owner of Miahona — Vision Invest — will sell a 30% stake on main market Tadawul in secondary share sale; its shares will remain locked up for six months from the first trading day. 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.
IN OTHER IPO NEWS-
Qualified investors will start today placing orders for the Nomu IPO of Horizon Educational, with the book-building process wrapping up on Thursday. The Riyadh-based school operator is taking a 20% stake to market by issuing 500k new shares and it’s guiding on a price range of SAR 48-54 a piece which could see it generate up to SAR 27 mn in proceeds and — at the top of the range — would give it a post-IPO market cap of SAR 135 mn.
