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Aluminum products maker Al Taiseer Group Talco Industrial (Talco) priced its Tadawul IPO at SAR 43 per share, financial advisor Alinma Investment said in a statement yesterday. The institutional tranche of the main market offering closed last week with a 68.5x oversubscription rate, signaling strong investor appetite. Talco is taking a 30% stake to market in a secondary share sale.
Pricing + valuation: The share price means Talco is set to raise SAR 516 mn from the IPO and give it a market cap of up to SAR 1.7 bn at the start of trading, according to our calculations.
What’s next? The two-day book building process for retail investors starts today and wraps up tomorrow. Investors can subscribe to a maximum of 1.2 mn offer shares, according to Alinma’s statement. The final allocation of shares will take place by Sunday, 2 June, while the first trading day remains contingent on fulfilling regulatory requirements.
Use of proceeds: Talco’s selling shareholders will take the transaction’s proceeds home after covering transaction related-expenses, which are 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.
