Saudi SAL Shipping Company for Logistics Services
Saudi Arabia market
It aims to raise up to 2.54 billion riyals
Dubai – Al Arabiya.net
Published on: September 25, 2023: 09:31 PM GST Last updated: September 25, 2023: 10:12 PM GST
Shipping company SAL Saudi Logistics received orders for all shares in its initial public offering in Riyadh hours after the start of the book-building period, showing continued investor demand for a listing in the Kingdom.
The largest Saudi airline and another shareholder said on Monday that they were seeking to raise up to 2.54 billion riyals ($678 million) from the initial public offering. Order books were covered across the price range within a few hours, according to people familiar with the matter who requested anonymity because the matter is private. A representative of the “SAL” company declined to comment, according to a report published by “Bloomberg” agency, and viewed by “Al Arabiya.net.”
The deal is the latest sign of strong sentiment in what is typically the largest and busiest listing market in the Arabian Gulf after a relatively slow first half. The decline in the Saudi stock market from the second half of last year until March due to the decline in oil prices led to the curbing of IPO activity, while subscriptions increased again at the beginning of the summer.
Earlier Monday, Lome Rent a Car rose 30% on the stock’s first day of trading.
HSBC Saudi Arabia, the SAL IPO Manager, announced the determination of the price range for the offering and the start of the book-building process for the institutional segment.
The company said that the price range was set between 98-106 riyals per share.
The offering process in “Saudi SAL” consists of the sale of 24 million ordinary shares of the company’s shares (offering shares), which represents 30% of the company’s capital, by the company’s current shareholders.
The minimum number of shares that can be subscribed for by participating categories is 50,000 shares, while the maximum number is 3.999 million shares.
Participation in the process of building the order book is limited to the categories qualified to participate in the process of building the order book in accordance with the instructions for building the order book and allocating shares in initial subscriptions issued by the Board of the Capital Market Authority.
The offering price for the public subscription in SAL Saudi Arabia will be determined after the completion of the process of building the order book, followed by the subscription process for the individual segment. The number of offering shares that will be initially allocated to the participating categories is 24 million offering shares, representing 100% of the total offering shares, provided that The final allocation will be after the end of the individual subscription period.
In the event that there is sufficient demand from individual subscribers, the manager of the institutional subscription registry has the right to reduce the number of offering shares allocated to participating categories to a minimum of 21.6 million shares, representing ninety percent (90%) of the offering shares.
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2023-09-25 17:31:00
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