Riyadh – Mubasher: Arabian Centres Company (Arabian Centres) completed its initial public offering (IPO), along with concluding the retail offering taken place on 9 May.

The retail offering attracted around 26,476 individual investors, subscribing for 5.72 million shares at the IPO price of SAR 26 apiece, according to a statement on Tuesday.

The retail offering made up 6% of the offer shares, Arabian Centres, the Saudi shopping malls operator owned by Fawaz Alhokair Group, noted.

“The retail offering followed the completion of the institutional book building process. The book building process generated an order book of SAR 3.1 billion and resulted in a subscription of 126% of the Offer Shares,” the statement added.

The public funds, private funds, and discretionary portfolios have acquired 57.1% of the retail offering, while the share of non-Saudi investors, including GCC investors; QFIs; and non-resident investors through swap agreements, hit 16.7%.

The stake of other investors, including government institutions; private companies; financial institutions; and authorised persons, reached 26.1%.

After the implementation of the retail offering, the number of shares which will be allocated to institutional investors will reach 89.30 million, excluding the purchase option.

“The Offering includes a total of 95 million shares comprised of 65 million existing shares to be sold by the current shareholders and 30,000,000 new shares to be issued by the Company by way of a capital increase together with the Offer Shares,” the statement noted.

The total value of the offering size stood at SAR 2.8 billion, the company said.

Arabian Centres hired Goldman Sachs Saudi Arabia as the stabilising manager to cover short positions resulting from any over-allotments

“The Company has engaged Samba Capital & Investment Management Company, Morgan Stanley Saudi Arabia, NCB Capital Company and Goldman Sachs Saudi Arabia to act as Joint Financial Advisors and Joint Bookrunners,” the statement concluded.

On Thursday, 9 May, Arabian Centres announced commencing its IPO for retail investors.