Arabian Centres closes IPO, retail investors buy 6 mln shares

Arabian Centres Co.’s initial public offering (IPO) closed today, with the conclusion of the retail offering.

A total of 26,480 retail investors subscribed to 5.7 million shares at SAR 26 each, or 6 percent of offered shares, the company said in a statement.

“Based on the results of the retail offering, the shares allocated to institutional investors will be scaled back to 89.3 million shares excluding the purchase option, representing 94.0 percent of the offer shares.

Final allocations and refunds (if any) will be processed on 14 May 2019,” Arabian Centres added.

The offering size is SAR 2.5 billion excluding the purchase option and total offering size is SAR 2.8 billion including 12.83 million over-allotment shares that have been allocated pursuant to the purchase option.

Arabian Centres is expected to have a free float of 20 percent of issued share capital (prior to any exercise of the purchase option or 22.7 percent in the event of full exercise of the purchase option.

For the purposes of allowing Goldman Sachs Saudi Arabia, as stabilising manager to cover short positions resulting from any over-allotments, FAS Real Estate Co. (the over-allotment shareholder) has granted the stabilising manager a purchase option.

Under that option, Goldman Sachs may purchase additional shares up to a maximum of 12,83 million shares, or 13.5 percent of the total number of shares comprised in the offering at the offer price out of the initial maximum number of 14,25 million over-allotment shares.

The purchase option will be exercisable wholly or partially upon notice by Goldman Sachs within a maximum of 30 days after debut on Tadawul (the stabilising period).

“Any shares made available pursuant to the purchase option will rank pari passu in all respects with the shares being sold in the offering, including for all dividends and other distributions declared, made or paid on the shares, and will be purchased on the same terms and conditions as the shares being sold in the Offering and will form a single class with such shares,” the statement added.