National Education’s issue price set at SAR 19/share, institutional offering 155% oversubscribed

The National Company for Learning & Education (NCLE) has set the share issue price for its initial public offering (IPO) at SAR 19/ share, stated Al Dukheil Financial Group, the financial advisor and lead manager of company’s IPO.

This price represents the maximum range after completing the book-building process.

Al Dukheil also added that the share offering for institutional investors was 155 percent oversubscribed, as follows:

- Brokerage firms, public as well as private investment funds, and private portfolios managed by brokerages (85.4 percent);

- Investors having ownerships in listed as well as unlisted companies (69.3 percent).

The Riyadh-based school operator offered 100 percent (13 million shares) of total offering size to institutional investors as well as investment funds, subject to a scaleback to 90 percent (11.70 million shares).

Up to 10 percent of the offering size (1.30 million shares) will be allocated to retail investors including Saudi and GCC individual investors during the period from Oct. 22-28, 2018.

The company, established in 1958, converted into a closed joint stock company in 2002. NCLE’s expansions began in 2009 by establishing Tarbya Namouthajiya Schools in Al-Rawabi district. The company continued to boost its capacity to accommodate over 17,000 students with an occupancy rate of 77 percent in 2017. NCLE will be the first Tadawul-listed education company.