BinDawood Holding issued on Monday a prospectus for its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul).

 

BinDawood will float 22.86 million shares, or 20% of its share capital.

 

On June 30, 2020, the Capital Market Authority (CMA) approved BinDawood’s request to sell 22.86 million shares, or 20% of its capital, in an IPO.

 

The IPO targets two tranches:

 

Participating parties

 

The tranche comprises institutions and companies, including qualified foreign investors and firms, Gulf investors and legal personalities. It includes all categories of investors entitled to participate in the book-building process.

 

A total of 22.86 million shares or 100% of the offering size will be allocated to institutional investors, subject to a scale-back to 90% or 20.57 million shares.

 

The final allocation will follow the completion of the retail offering.

 

Retail investors

 

The tranche comprises Saudi nationals, including any Saudi female divorcees or widows with minor children from a non-Saudi father, and any non-Saudi natural person who is a resident in the Kingdom and any GCC national, in each case who has a bank account with one of the receiving entities.

 

Up to 10% of the offering size or 2.286 million shares will be allocated to this tranche.

 

The book-building process for institutional investors will run from Sept. 13-22, while the retail offering will open from Sept. 27-29.

 

Key highlights:

 

Akasiya Star Trading Co. Ltd. will be the largest shareholders in the Saudi grocer following the share sale with a 67.57% stake. The following table illustrates the major shareholders before and after the IPO:

 

Major Shareholders

Shareholder

Number of shares before IPO

 (mln shares)

Stake

%

Number of shares after IPO

(mln shares)

Stake

%

Akasiya Star Trading Co. Ltd.

96.54

84.47 %

77.23

67.57 %

Abdullah BinDawood Sons Co. Ltd.

9.76

8.54 %

7.80

6.83 %

Commercial Growth Development Co.

8.00

7.00 %

6.40

5.60 %

Public

--

--

22.86

20.00 %

Total

114.30

100.00 %

114.30

100.00 %

 

Company’s Profile

Company

BinDawood Holding Co.

Market

TASI - Main Market

Main activities

Holding companies i.e. assets (owning controlling-levels of equity) of a group of subsidiary corporations and whose principal activity is owning the subsidiaries

Status

Active

Capital

SAR 1.143 bln

 

IPO Summary

Issue percentage (%)

20%

Number of shares offered

22.86 mln shares

IPO Price

Determined through book building process

Qualified subscribers

-Participating categories include a group of institutions, companies, QFIs, legal entities and GCC investors.

-Retail investors.

IPO minimum size for retail investors

10 shares

IPO minimum size for participating categories

100,000 shares

IPO maximum size for retail investors

571,500 shares

IPO maximum size for institutional investors

5.71 mln shares

Registering requests and book building period

Sept. 13-22

IPO Period

Three business days, starting Sept. 27 to Sept. 29

Final allotment of IPO shares

Oct. 1, 2020

Surplus repayment

Oct. 1, 2020

 

Additional Information

Lead manager, underwriter

NCB Capital

Financial advisors

Goldman Sachs Saudi Arabia, J.P. Morgan Saudi Arabia

IPO coordinators

Goldman Sachs Saudi Arabia, J.P.  Morgan Saudi Arabia, NCBC

Institutions book runners

Goldman Sachs Saudi Arabia, J.P.  Morgan Saudi Arabia, GIB Capital, NCBC

Main institutions book runner

GIB Capital

Underwriters

Goldman Sachs Saudi Arabia, J.P.  Morgan Saudi Arabia, GIB Capital, NCBC

Receiving banks

NCB, Al Rajhi Bank

 

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