Marafiq issues prospectus for listing 73.09 mln shares on Tadawul

Logo of Power and Water Utility Company for Jubail and Yanbu (MARAFIQ)

Power and Water Utility Company for Jubail and Yanbu (Marafiq) issued today the prospectus for offering 73.09 million shares, or 29.24% of capital, on the Saudi Exchange (Tadawul).

The Capital Market Authority (CMA) approved, on Sept. 26, the application received from the company for the registration and offering of 73.09 million shares, or 29.24% of capital.

The period for registering requests and book building will run six days from Oct. 9-14, 2022.

Subscription period for retail investors will begin on Oct. 26, and run for four days.

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 73.09 million, representing 100% of the total initial public offering (IPO). The final allocation of the offer shares will be made after the end of the subscription period for individual investors. The lead managers shall have the right to reduce the number of shares allocated to participating parties to 51.17 million shares, representing 70% of the total offer 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 retail investors amounts to 21.93 million shares maximum, or 30% of the total offered shares.

Established under a royal decree issued in October 2000, Marafiq is a joint-stock company owned by four major shareholders, namely Saudi Aramco, Royal Commission for Jubail and Yanbu (RCJY), Saudi Basic Industries Corp. (SABIC) and Public Investment Fund (PIF), with each holding a 24.81% stake. This is in addition to private-sector investors, with a 0.76% holding, according to Argaam's data.

Marafiq commenced operations in January 2003, with a capital share of SAR 2.5 billion.

The company's main activity is to operate as the main energy supplier for Jubail and Yanbu cities, as well as provide energy for oil and petrochemical facilities owned by companies such as Saudi Aramco and SABIC.

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