Fakeeh Care's retail IPO 14.5x covered; 3 shares min allotted/subscriber

Subscription to Dr. Soliman Abdulkader Fakeeh Hospital Co.’s (Fakeeh Care Group) retail offering of 4.98 million shares was 14.5x covered, said HSBC Saudi Arabia, the financial advisor, lead manager and underwriter. A minimum of three shares was allotted per individual subscriber. 

 

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Meanwhile, rump shares will be allocated pro rata, based on the demand size of each subscriber to total shares. The allotment ratio amounted to 1.4075%. Fractional shares were combined and allotted in a descending order, starting from the highest subscription applications with one share each.   

 

Fakeeh Care indicated that the Employee Investment Fund purchased 1.04 million ordinary shares in the former from the selling shareholders, representing 0.45% of the company’s post-increase capital. These shares were purchased based on the final offering price of SAR 57.5 apiece, on behalf of authorized employees seeking investment in the IPO shares.

 

A total of two million shares, or 0.86% of the company's post-increase capital, were allocated as treasury shares for the employee stock program, which aims to provide incentives to attract key cadres to the group. These shares will be retained with the aim of achieving the group's goals and strategy, it added.

 

It stated that the final offering price was set at SAR 57.5 per share. Accordingly, the company’s market value upon listing amounted to SAR 13.3 billion ($3.6 billion), with the IPO totaling SAR 2.9 billion ($764 million).

 

Fakeeh Care expected these shares to be available for free-float trading immediately after making debut on TASI. They amount to 21.47% (49.8 million shares) of the company’s total 232 million share capital.

 

Retail investors started, on May 21, subscription to 4.98 million Fakeeh Care shares at SAR 57.5 apiece. The offer price was set based on the bookbuilding process.

 

The company has recently announced finalizing the bookbuilding process for participating parties, with an estimated 119x coverage.