Saudi Tadawul reveals IPO price range; Aims to raise up to $1bn

By Shilpa Annie Joseph, Official Reporter
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The Saudi Tadawul Group, which operates the kingdom’s stock exchange, has set the price range for its initial public offering (IPO), indicating that it could raise up to $1 billion (3.78 billion riyals) in the deal.

Through the sale of existing shares by the only shareholder, the Public Investment Fund (PIF), the Saudi Stock Exchange would offer 36 million ordinary shares, representing 30 percent of its issued share capital of 120 million shares.

According to the statement, Saudi Tadawul plans to sell per share at the price range of $25.31 (95 riyals) to $27.97 (105 riyals).

Saudi stock exchange has stated that the final price for its offering will be determined after the completion of the book-building process, which begins on November 21 and ends on November 26.

As per the reports, the company is expected to have a free float of 30 percent of the share capital immediately following the listing. Saudi Tadawul Group had earlier said it will list its ordinary shares on the bourse’s main market.

Tadawul has a market capitalization of more than $2.6 trillion (10 trillion riyals). Once listed, it will become the third publicly traded stock exchange in the region after the Dubai Financial Market (DFM) and Boursa Kuwait.

The Company appointed SNB Capital Company (SNB Capital), JP Morgan Saudi Arabia Company (JP Morgan), and Citigroup Saudi Arabia (Citigroup) as Financial Advisors, Joint Global Coordinators, Underwriters and Bookrunners. It has also appointed SNB Capital to act as Lead Manager. The Saudi National Bank (SNB), Al Rajhi Bank, Riyad Bank, Alinma Bank, and Arab National Bank (ANB) have been appointed as receiving agents, as per the statement.

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