Al Arabia issues prospectus to float 15 mln shares on Tadawul

Tadawul trading screen

Arabian Contracting Services Co. (Al Arabia) announced today, Oct. 3, issuing the prospectus for its planned initial public offering (IPO) on the Saudi Exchange (Tadawul).

Al Arabia plans to sell 15 million shares, or 30% of its 50 million share capital. The retail offering will run from Oct. 26 to Oct. 29.

The Capital Market Authority (CMA) approved, on June 28, the company's request to float 15 million shares.

The subscription targets two tranches:

Participating parties: This tranche comprises the parties entitled to participate in the book building process as specified under the book building instructions. The number of shares that will be allocated initially is 15 million, representing 100% of the total shares offered for subscription. Final allocation will be made after the end of the subscription period for individual investors. Lead managers will have the right to reduce the number of shares allocated to participating parties to a minimum of 13.5 million, representing 90% of the total offered shares.

Individual investors: This tranche comprises Saudi Arabian natural persons, in addition to any non-Saudi natural person who is resident in the Kingdom or any GCC natural persons, provided they have a bank account with one of the receiving entities and are allowed to open an investment account. The number of shares offered for individual investors amounts to 1.50 million maximum, or 10% of total offered shares.

The price range will be set through the book building that will start on Sept. 5. All tranches are allowed to participate in the process. After completing the book building, lead managers will announce the coverage ratio.

The financial advisor and the company will have the authority to set the offer price according to bids and demand, provided that it shall not exceed the price defined in the underwriting agreement. 

The book-building process will begin from Oct. 10 to Oct. 19 at 12 pm. 

Company Profile
Company	Arabian Contracting Services Co.
Market	Saudi Exchange (Tadawul)
Core Activities	Setting up, operating and maintaining outdoor advertising billboards, specifically roadside advertising and indoor advertising.
Capital	SAR 500 mln

 

IPO Summary
Issue percentage (%)	30%
Number of shares offered	15 mln shares
Qualified subscribers	- Participating categories that include investment funds, QFIs, legal entities and GCC investors. - Retail investors.
IPO minimum limit for retail	10 shares
IPO minimum size for institutional investors	10,000 shares
IPO maximum size for retail investors	300,000 shares
IPO maximum size for institutional investors	2,499,999 shares
Registering requests and book building period	Oct. 10-19, 2021
Retail offering period (3 days)	Oct. 26-28, 2021
Final allotment	Nov. 4, 2021
Surplus refunds	Nov. 4, 2021

 

Special Information
Financial advisor, lead manager, book runner and lead underwriter	GIB Capital
Co-underwriter	Albilad Capital
Receiving banks	Riyad Bank, Saudi National Bank, Saudi British Bank, Bank Albilad

 

Company Shareholders
Shareholders	Before IPO		After IPO
	Number of shares (mln shares)	Ownership%	Number of shares (mln shares)	Ownership%
Abdullah Abdulrahman Alkhereiji	12.50	25.00%	--	--
Engineer Holding Group Co.	35.00	70.00%	32.50	65.00%
MBC Group Holdings Co.	2.50	5.00%	2.50	5.00%
Public	--	--	1.50	30.00%
Total	50.00	100%	50.00	100%

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