Saudi Utility Jointly Owned By Aramco And PIF Sets IPO Price Range

The share market of Saudi Arabia is all set to feature something new this time. The power and utility company of Saudi Arabia for Jubail and Yanbu is all set to enter the share market initial public offering set at the price of 41 to 46 riyals ($10.91-12.24) per share.

This information has been shared by HSBC (Hong Kong and Shanghai Banking Corporation) in a statement recorded on Sunday. HSBC along with the Riyad Capitals are the financial advisers, bookrunners of the IPO who have been indulged in the book-building of this 30% free float shares of the company. Furthermore, they stated all these things during the stock exchange filing. 

Currently, Marafiq is now looking to list on Riyadh’s Tadawul bourse and hence will be selling off 29.24% of the capital issued which will be just over 73 million shares. Moreover, this all will be done by selling all the stakes held by the investors which are 5% or more than it.

They are mainly named as the substantial shareholders who are acting as the Royal Commission regarding the Yanni and Jubail with the likes of oil giant Aramco subsidiary Saudi Aramco Power Company (SAPCO), Saudi Basic Industries Corporation, and sovereign Public Investment Fund(PIF). According to the Refinitiv data, all four stakeholders own 24.81% and Aramco owns a 70% stake in it. 

Final Listing Price

In the reports that are coming out regarding the company’s share, it has been decided that the final listing price of the share will only be determined after the book building gets completed on Friday. Apart from it, the subscribers will be getting a chance to subscribe to the share from the 26th to the 29th of October. And regarding the listing of the shares, it will be done by 2nd November. 

Riyad Capital is also acting as the underwriter to host the IPO and for them, the companies like Saudi British Bank, Saudi National Bank, Al Rajhi Bank, and Banque Saudi Fransi will be acting as the receiving companies or agents who will be looking to put their best effort in it.

Besides all the other issues and the IPO listing, it has been reported that Marafiq was adjudged as the one who will be providing the integrated utility services from the 2000s, and to the cities like Yanbu and Jubail who have been termed as the industrial cities because of their production capabilities and much more. 

Now with all the listing price and Ipo talks underway, the ending weeks of October month are surely going to play a big role in the life of the company owners and their fates will be decided on the 2nd of November when the shares of the company will be listed in the market.

Furthermore, Aramco and PIF will be having a close eye on the market in the upcoming days as they have invested heavily and hence will be looking to get positive results from the IPO that will be listing soon.