Alkhorayef Water debuts on Tadawul today

Logo of Alkhorayef Water & Power Technologies 

Alkhorayef Water & Power Technologies Co. (AWPT) starts trading on the Saudi Stock Exchange (Tadawul) today, March 1, 2021, with symbol 2081 under the public utilities sector.

The stock’s daily fluctuation limit stands at ±30% while the static price fluctuation limits are ±10%.

These fluctuation limits will be applied only during the first three days of listing, and from the fourth trading day onwards, the daily price fluctuation limits will revert to ±10% and the static price fluctuation limits will no longer apply.

AWPT is the first company to be listed on Tadawul’s main market since the fluctuation limits came into effect on Nov. 8, 2020.

Last year, the market saw the listing of Dr. Sulaiman Al Habib Medical Services Group in March followed by Amlak International for Real Estate Finance Co. in July and BinDawood Holding Co. in October.

AWPT listing will bring the total number of Tadawul-listed companies to 187, excluding the 17 real estate investment trusts (REITs).

The company floated a 30% stake, or 7.5 million shares, in an initial public offering (IPO), out of which 90% was allocated to institutions and 10% to retail investors.

The retail offering was 1,511.52% oversubscribed, with a total of 136,988 individual investors, injecting SAR 816.22 million to buy 750,000 shares at SAR 72 per share. Meanwhile, the institutional offering was 6,320% oversubscribed.

Allotment was set at 5 shares minimum per retail subscriber as per the subscription application, while the remaining shares were allotted pro rata as per requested to remaining shares.

Company Info:

In 1985, the company started as a business unit of Abdullah Ibrahim Alkhorayef. In 1991, it was set up in Riyadh as a limited liability company with a capital of SAR 5 million.

In 2020, the firm was converted into a closed joint-stock company, Alkhorayef Water & Power Technologies Co. (AWPT) and its capital was hiked from SAR 80 million to SAR 250 million.

The company's main activities are in the water, wastewater and integrated water solutions sectors.

Its activities include extensions of water pipelines between and within cities, construction of new networks and their maintenance, construction and repair of main stations and lines for water distribution, construction and repair of irrigation and watering canals and main water storage towers, drilling and maintenance of water wells, construction and repair of sewage stations and projects, sewage networks and pumps, and the construction of dams.

Company Projects:

AWPT said in the IPO prospectus that it has 47 existing projects, distributed over a number of regions, with a total value of SAR 1.7 billion.

The Ministry of Environment, Water and Agriculture accounts for the largest share of the company's projects, with 29 projects at a value of SAR 1.04 billion, or 61% of its total projects.

The company has a number of existing projects with the National Water Company, Saudi Electricity Co., Riyadh Development Authority, Qiddiya Investment Company, Ma'aden Wa'ad Al Shamal Phosphate Company (MWSPC), and others.

The company seeks to bolster its portfolio of contracts in the growing sectors of project services, with regard to networks (distribution, wastewater, water and rainwater transportation), and other infrastructure projects.

Alkhorayef Group is the largest shareholder in the company after the offering, with 51%, followed by Alkhorayef Development Co. with 5%.

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