Riyadh – Mubasher: Power and Water Utility Company for Jubail and Yanbu (Marafiq) settled the final price of its initial public offering (IPO) at SAR 46 per share to trade on the Main Market of the Saudi Exchange (Tadawul).

The offering was oversubscribed by 59 times and generated an order book of SAR 197 billion ($52.50 billion), according to a recent bourse disclosure.

Furthermore, the IPO is implying a market capitalisation of SAR 11.50 billion ($3.10 billion) at listing.

The Saudi company will offer 73.09 million shares, representing 29.24% of its issued share capital, to the individual investor tranche whose subscription process will take place during 26-30 October.

Meanwhile, a maximum number of 21.92 million shares, accounting for 30% of the total offer shares, will be allocated to individual investors.

Mohammed Al Zuabi, President and CEO of Marafiq, commented: “The strong institutional interest in our offering underlines the demand and confidence in our investment proposition - we are a stable revenue generating business, with strong growth prospects, and a clear and promising dividend policy.”

Al Zuabi noted: “We started our journey almost 20 years ago with a mandate to provide power and water services to industrial cities in Jubail and Yanbu, and have since grown to provide water utilities services inRas Al Khair and power and water utilities services in Jazan.”

Earlier this month, Marafiq set the price range of its IPO at SAR 41-46 per share after it had obtained the approval of the Capital Market Authority (CMA) last September.