Retail subscription to MARAFIQ’s IPO starts today

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

Retail investors will start today, Oct. 26, subscription to about 21.93 million shares of Power and Utility Company for Jubail and Yanbu (MARAFIQ), or 30% of total offered shares, at SAR 46 each, as set by the book-building process. 

The subscription process for the retail tranche will run for five days, until Oct. 30. 

The Capital Market Authority (CMA) approved on Sept. 26 the company's request to float a 29.24% stake, or 73.09 million shares, in an initial public offering (IPO).

The company’s institutional offering, which ended last week, was 59x covered.

The value of subscription applications received during the book building process reached SAR 1 billion.

This will be the 12th listing on the main market this year, after East Pipes Integrated Company for Industry (Jan. 24), Scientific & Medical Equipment House Co. (Jan. 31), Elm Co. (Feb. 3), Al-Dawaa Medical Services Co. (Feb. 27), Al Masane Al Kobra Mining Co. (March 9), Nahdi Medical Co. (March 13), Saudi Home Loans Co. (March 27), Retal Urban Development Co. (June 5), Alamar Foods (July 20), Naqi Water Co. (July 27) and Arabian Drilling Co. (Oct. 18).

Last year witnessed nine listings, including Alkhorayef Water and Power Technologies Co. (March 1), Theeb Rent a Car Co. (March 29), Tanmiah Food Co. (Aug. 4), Arabian Internet and Communications Services Co. (solutions) (Sept. 30), ACWA Power (Oct. 11), Arabian Contracting Services Co. (Nov. 15), Nayifat Finance Co. (Nov. 22), Saudi Tadawul Group (Dec. 8) and Almunajem Foods Co. (Dec. 20). 

Company Profile 

MARAFIQ was established in October 2000, with its headquarters located in Jubail. Its capital stands at 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.

The company's business is divided into three segments through the services it provides, which are energy, water, and sales gas.

The company mainly operates in Jubail Industrial City and Yanbu Industrial City, but has recently expanded to Jazan City for Primary and Downstream Industries and Ras Al Khair Industrial City.

The company is the only provider of energy and water services in Yanbu, the only provider of water services in Jubail, a provider of water services in Ras Al Khair, and a provider of energy and water services in Jazan.

MARAFIQ and its subsidiaries were responsible for 3.2% of the Kingdom’s total electricity generation capacity (licensed megawatts) in 2020, and 7.2% of the Kingdom’s water desalination capacity.

Group's main projects in the past 12 years:

The group handled several major projects within the stipulated time and approved budget. The following are some of the major projects executed by the company in the past twelve years:

Subsidiaries:

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