BinDawood’s Retail IPO oversubscribed by 1,396 percent

By Rahul Vaimal, Associate Editor
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BinDawood Holding Company, one of Saudi Arabia’s leading hypermarket and supermarket grocery retail operators, successfully completed the retail offer in conjunction with its initial public offering (IPO) of shares.

According to NCB Capital, the lead manager of the offering, its retail offering was oversubscribed by 1,396 percent. Goldman Sachs Saudi Arabia and JP Morgan Saudi Arabia Company acted as joint financial advisors on the transaction.

Public funds, private funds and discretionary accounts along with non-Saudi investors and other investors, such as government and financial institutions, generated more subscriptions.

The retail offering took place from Oct. 8 to 12, 2020, after the institutional book-building phase was completed.

At the IPO price of $25.60 (SR96) per share, a total of 324,046 individual investors subscribed to invest $815 million (SR3.06 billion), rendering it oversubscribed by 1,395.91 percent.

On Oct. 8, retail investors began subscribing to about 2.29 million BinDawood shares at $25.60 (SR96) each, after the institutional book-building process was completed. The institutional offering was oversubscribed by 4.870 percent.

A minimum of 7 shares is allocated by the company to each retail subscriber included in the subscription order. Compared to the total remaining subscribed shares, the remaining shares were distributed on a pro-rata basis at about 0.05964 percent, based on the size of each subscriber’s order.

Final allocations and refunds (if any) will be processed by Oct. 20, 2020, at the latest.

After the completion of the institutional book-building phase, the retail offering followed. An order book of around $28 billion (SR106.9 billion) was created by the book-building process.