Saudi Tadawul Group Holding set the final price of its initial public offering at the top end of the range, giving the Riyadh-based stock exchange a valuation of SAR12.6 billion ($3.4bn).
Tadawul set the price at SAR105 per share after an institutional book-building process, according to a statement. The coverage ratio was 121 percent of shares on offer and the order book amounted to SAR458bn ($122bn).
At that price, the share sale will raise as much as $1bn for the exchange’s sole shareholder, the Public Investment Fund, from selling a 30 percent stake. Tadawul had set the price range at SAR95 to SAR105 a share for the IPO.
- IPO opens for retail subscription: November 30 to December 2
- A maximum of 10.8 million shares will be allocated to individual investors
The offering comes amid an IPO boom, with companies around the world raising a record of more than $600bn this year. Against that backdrop, Saudi Arabia has been among the leaders in the Middle East, listing private and family-owned firms as well as companies such as ACWA Power International and Saudi Telecom Co.’s internet-services unit.
Tadawul’s IPO has been on the cards since at least 2016, when it hired HSBC Holdings Plc as an adviser. It put the offering on hold while the exchange went through a process of increasing access for foreign investors, and then staged the listing of Aramco in 2019, the largest ever.
The process was resumed earlier this year and Tadawul replaced HSBC with Citigroup Inc., JPMorgan Chase & Co., and SNB Capital as financial advisers and global coordinators. It’s set to be the biggest offering in the exchanges sector since Euronext’s $1.2bn IPO in 2014.
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