Tadawul/Bloomberg

Arabian Centres to raise SAR 2.8 billion after pricing IPO at bottom of range

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The firm plans to exercise an over-allotment option, increasing the deal size from SAR 2.47 billion to SAR 2.8 billion equivalent to a stake of 22.7 per cent.

Thursday 09, May 2019 BY KUDAKWASHE MUZORIWA

Saudi-based Fawaz Alhokair Group’s Arabian Centres is set to raise as much as SAR 2.8 billion ($747 million) after pricing its initial public offering (IPO) at the bottom of its indicative range.

This will make it one of the biggest IPOs in the Kingdom since National Commercial Bank (NCB) raised $6 billion in 2014 and Saudi Ground Services raised $752 million in 2015.

The Saudi based mall operator priced its IPO at SAR 26 per share for the sale of 95 million shares.

Additionally, the book-building process attracted an order-book of SAR 3.1 billion from public and private funds, overseas investors and other institutions in Saudi Arabia.

Arabian Centres will be Saudi Arabia’s first under Rule 144a, which allows the sale of securities primarily to qualified institutional buyers in the US.

The company operates 19 malls, making it the leading owner and operator of shopping malls in Saudi Arabia by total gross leasable area as of the end of 2018, reported Reuters.

 

TAGS : Fawaz Alhokair Group, Arabian Centres, IPO

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