Arabian Centres IPO for retail investors opens today

09/05/2019 Argaam

 

Arabian Centres Co. will launch its initial public offering (IPO) for retail investors today, Thursday, May 9. The offering will extend today only until 11:59 PM.

 

Retail investors will subscribe to 9.5 million shares, at SAR 26 per share.

 

The Capital Market Authority (CMA) approved on April 15 a request from Arabian Centres Co. to float 95 million shares, or 20% percent of its capital in a public offering.

 

A 90 percent of total IPO shares were allocated for institutions, with the remaining 10 percent offered to retail investors.

 

A total of 65 million shares will be sold by existing shareholders, while 30 million shares will be issued by the company through a capital hike.

 

The IPO is the third offering on Tadawul year to date, after Maharah Human Resource Co., which kicked off yesterday. Al Moammar Information Systems Co. also launched its public offering in March.

 

Arabian Centres was established in 2002 as a closed joint stock company. It is a subsidiary of Fawaz Alhokair Group and specializes in mall management, tenant relations and leasing.

 

The company operates through six affiliates, as follows:

 

Company’s Active Affiliates

No.

Affiliate

Capital

(SAR ‘000)

Direct stake %

Indirect stake %

1

Riyadh Centers Co Ltd

500

95 %

5 %

2

Qassim for Entertainment and Commercial Projects Co. (owned by Abdulmohsen Alhokair & partners)

500

50 %

0 %

3

Oyoun Al Basateen Trading Co.

100

95 %

5 %

4

Oyoun Al Raed Trading Complex Co.

100

95 %

5 %

5

Al Bawarij International For Development & Real Estate Investment Co.

500

95 %

5 %

6

Makarem International Real Estate Development Co.

 

500

95 %

5 %

The company has 12 non-active affiliates.

 

Company Profile

Company

Arabian Centres Co.

Stock market

TASI- Main Market

Company’s core business

Owns and runs malls

Company’s status

Active

Company’s current capital

SAR 4.45 bln

Company’s capital after IPO

SAR 4.75 bln

 

IPO Details

IPO Percentage

20% (95 mln shares)

Number of IPO shares for retail investors

9.5 mln shares

IPO % for retail investors

10% of total IPO shares

IPO price per share

SAR 26

IPO size for retail investors

SAR 247 mln

Eligible investors

Saudis and GCC investors

IPO minimum for retail investors

10 shares

IPO minimum for institutional investors

100,000 shares

IPO maximum for retail & institutional investors

23.75 mln shares

IPO period for retail investors

One day, May 9, 2019

Allotment

May 14, 2019

Surplus repayment

May 14, 2019

Additional Details

Lead manager, Financial advisor, lead manager for institutional investors, main IPO coordinator and main underwriter

Samba Capital

Financial advisor, lead manager for institutional investors and underwriter

Samba Capital, Morgan Stanley, NCBC

Financial advisor, lead manager for institutional investors

Goldman Sacs , EFG Hermes KSA

Financial advisor, lead manager for institutional investors and price stabilization manager

Goldman Sacs

Underwriters

Morgan Stanley Saudi Arabia, NCBC

lead manager for institutional investors

CitiGroup, Emirates NBAD Capital, Credit Suisse, EFG Hermes

lead manager for institutional investors residing outside the Kingdom

Natixis

Receiving banks

NCB, Samba

IPO cost

Estimated at SAR 180 mln will be distributed on sellers and the company on a prorate basis according to sold shares and IPO issued shares

 

Major Shareholders After IPO

Shareholder

Number of shares before IPO (mln)

Stake %

Number of shares after IPO (mln)

Stake %

Fawaz Abdulaziz Alhokair

44.50

10 %

38.00

8 %

Sulaiman Abdulaziz Alhokair

44.50

10 %

38.00

8 %

Abdul Majeed Abdulaziz Alhokair

44.50

10%

38.00

8 %

Al Fareeda 1

22.25

5 %

19.00

4 %

Al Fareeda 2

22.25

5 %

19.00

4 %

Al Fareeda 3

22.25

5 %

19.00

4 %

FAS Real Estate Co.

231.40

52 %

197.60

41.6 %

Sa’af International Co.

13.35

3 %

11.40

2.4 %

Public

--

--

95.00

20.0 %

Total

445.00

100 %

475.00

100.00 %

 

Recent IPOs

Company

IPO price

(SAR)

Number of shares for retail investors

(mln share)

Coverage ratio %

(retail)

2019

Al Moammar

45

0.71

149%

Maharah HR*

--

1.13

--

2018

National Learning

19

1.30

327 %

Leejam

52

1.57

245 %

2017

Al Waha

51

0.9

263 %

2016

L’Azurde

37

3.87

293 %

Al Yamamah Steel

36

4.57

479 %

Saudi German Hospital

64

8.28

274 %

2015

Alandalus

18

8.40

464 %

SGS

50

22.60

339 %

SACO

70

2.88

620 %

MEPCO

30

6.00

473 %

*IPO still ongoing.

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