The Power and Water Utility Company for Jubail and Yanbu (Marafiq), which is offering 29.24% of its issued share capital through an IPO, has announced the price range for the offering shares to be between SR41 (US$11) and SR46 per share.
The company also announced the start of the offering and bookbuilding phase of the participating parties, according to a press release.
The offering includes 73,094,500 shares to be sold by the current four main shareholders. The total volume of the offering is expected to be between SR 2.98 billion (US$799 million) and SR 336 billion (US$897 million), giving a market capitalization of between SR 10.25 billion (US$2.73 billion). -$) and SR11.50 billion (US$3.07 billion) implied. .
Free float of 30 pcs
It is expected that the Company will have a free float of 30% of the Company’s total issued share capital at the time of the listing.
The IPO involves an offering of 73,094,500 Offered Shares to participating parties, this tranche includes a number of institutions and companies including investment funds, qualified foreign investors and GCC investors with legal personality who are eligible to participate in the bookbuilding process as indicated below the Instructions for the Bookbuilding Process and Allotment Method in IPOs issued by the Capital Market Authority Board pursuant to Resolution No. 2.94-2016 of 10/15/1437H (corresponding to 07/20/2016G) as amended by CMA Board Resolution No. 3-102-2019 of 18.01.1441H (equivalent to 17.09.2019G) (the “Book Preparation Instructions”).
Upon completion of the bookbuilding process of the Participating Parties’ tranche, the Offered Shares will also be offered to retail investors, this tranche includes Saudi individuals, including any Saudi divorced woman or widow with minor children from a marriage to a non-Saudi individual entitled to the to subscribe for Offer Shares for her own benefit or on behalf of her minor children, on condition that she proves that she is divorced or widowed and the mother of her minor children, all non-Saudi State, is a resident individual of the Kingdom, respectively GCC nationals who hold a bank account and are eligible to open an investment account with one of the receiving agencies.
Involved Parties
Initially, 100% of the Offer Shares will be provisionally allotted to the parties involved. This may be reduced by the Financial Advisers to 51,166,150 Offered Shares (equivalent to 70% of the total Offered Shares) subject to the level of retail investor demand. The final number of Offer Shares allotted to participating parties will be adjusted accordingly based on subscriptions from retail investors.
The Offer Shares to the parties involved will be made as follows:
*Participating parties registered in the Kingdom may submit a bid form or subscription electronically via email during the offering and bookbuilding period and in accordance with the bidding guidelines provided by the Financial Advisors (as defined below) and the bid guidelines communicated by the Financial Advisors apply bookmaker. The offering forms will be provided by the Financial Advisers and Bookrunners. In addition, participants registered in the Kingdom must complete the Subscription Form following the allotment of Offer Shares based on their provisionally allotted number of Offer Shares.
Individual investors
The Offer Shares for retail investors will be as follows:
*Individual investors must complete and submit an application form. Retail investors who have participated in recent IPOs in the UK may also register via the internet, telephone banking or ATMs (cash dispensers) at any of the branches of Receiving Agents who offer some or all such services to their clients, provided that the following eligibility requirements are met are: (i) the individual investor must have a bank account with a receiving agent offering such services; and (ii) there has been no change to the individual investor’s personal information or data (by excluding or adding a member of his family) since that individual last participated in an IPO.
Significant Shareholders
Significant shareholders owning 5% or more of the shares at the time of listing, including (i) the Royal Commission for Jubail and Yanbu, (ii) the Public Investment Fund (PIF), (iii) the Saudi Aramco Power Company (Sapco) (a wholly owned subsidiary of Saudi Arabian Oil Company (Saudi Aramco)) and (iv) Saudi Basic Industries Corporation (Sabic) (the principal shareholders) may not sell any of their shares for a period of six months after the listing and the Company may for not list any further shares on the Saudi Exchange for a period of six months after the listing, in each case from the date on which trading of the Company’s shares on the Saudi Exchange begins.
CMA Approval
Approval was obtained from the CMA for the registration and offering of the Company’s shares on 02/30/1444H (corresponding to 09/26/2022G) and approval from the Saudi Exchange Company for the listing of the Company’s shares on the Saudi Exchange (Tadawul).
In relation to the Offering, the Company has appointed HSBC Saudi Arabia as Joint Financial Advisor, Bookrunner, Joint Global Coordinator, Lead Manager and Underwriter; and Riyad Capital as joint financial advisor, bookrunner, joint global coordinator and underwriter.
Al Rajhi Bank, Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank have been appointed as Receiving Agents (collectively, the Receiving Agents).
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