MARAFIQ retail offering 632% covered, 10 shares allocated per subscriber

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

HSBC Saudi Arabia and Riyad Capital, as the financial advisors, book-runners and underwriters on the initial public offering (IPO) of Power and Utility Company for Jubail and Yanbu (MARAFIQ), announced the successful completion of the retail offering. 

According to a statement to Tadawul, a minimum of 10 shares were allocated per individual subscriber. The retail offering was 632% oversubscribed, attracting total orders of nearly SAR 6.37 billion.

The remaining shares will be allocated pro-rata, with an allocation factor of 4.91%.

Fractional shares were collated and allocated in a descending manner at one share per order.

Retail investors started, on Oct. 26, subscription to about 21.93 million shares of MARAFIQ, or 30% of total offered shares, at SAR 46 each, as set by the book-building process, Argaam earlier reported. 

The retail offering was closed on 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 Jubail-headquartered utility was established in October 2000. Its capital stands at SAR 2.5 billion.

MARAFIQ’s core business is focused on water supply, sewage, waste management and treatment, electricity, gas, steam supply, air conditioning, and construction.