Riyadh – Mubasher: Arabian Centres Company announced the price range for its initial public offering (IPO) and the start of the institutional bookbuilding period.

The price range for the IPO has been set at SAR 26 ($6.94) to SAR 33 ($8.81) a share with a market capitalisation on admission of between SAR 12.4 billion ($3.3 billion) and SAR 15.7 billion ($4.2 billion), according to a statement on Sunday.

The Saudi shopping malls operator, owned by Fawaz Alhokair Group, will offer a total of 95 million shares, divided into 65,000,000 current shares to be sold by the existing shareholders and 30 million new shares to be issued by the company through a capital increase.

The offering size is expected to be between SAR 2.47 billion ($659 million) and SAR 3.14 billion ($836 million).

Gross primary proceeds are forecast to be between SAR 780 million ($208 million) and SAR 990 million ($264 million) which will be directed to debt repayment.

Upon admission, the company will “have a free float of 20% of the company’s enlarged issued share capital, prior to any exercise of the over-allotment option,” the statement added.

Arabian Centres Company appointed Samba Capital & Investment Management Company, Morgan Stanley Saudi Arabia, NCB Capital Company, and Goldman Sachs Saudi Arabia as joint financial advisers and joint bookrunners.

Moreover, Citigroup Saudi Arabia, Credit Suisse Saudi Arabia, EFG Hermes KSA, Emirates NBD Capital KSA, and Natixis were hired to act as joint bookrunners.

Samba Capital & Investment Management Company has also been mandated as lead coordinator and lead manager of the offering.