L’Azurde sets IPO price at SAR 37 per share

L’Azurde Company for Jewelry has set the price for its upcoming initial public offering (IPO) at SAR 37.0 per share, after completing the book building process of the institutional tranche.

The offer was 8.6x times covered at the upper end of the price range, Saudi Fransi Capital, the financial advisor, lead manager, bookrunner and sole underwriter for the offering said in a statement. A total of 137 funds and other institutional investors participated in the offering.

L’Azurde’s IPO will see a total of 12.9 million shares offered to investors, representing 30 percent of the company’s outstanding capital.

During the first phase of the subscription process, 100 percent of shares were offered to institutional investors, of which 90 percent will be allocated to mutual funds.

In the second phase, 3.87 million shares, accounting for 30 percent of total shares offered, will be allocated to retail investors.

The retail tranche will be held from June 5 to June 13. Final allocation will take place after completion of the retail tranche, the statement added.

The family-owned company reported SAR 100.6 million earnings in 2015, compared to SAR 86.3 million in 2014, on a 4 percent rise in revenues and foreign exchange gains of SAR 7 million, according to data available on Argaam.