Offering 29.24% of the Saudi “Mahrafiq” with a price range between 41 and 46 riyals per share

HSBC Saudi Arabia and Riyad Capital, in their capacity as financial advisors, bookrunners and underwriters for the initial public offering of the Electricity and Water Utilities Company in Jubail and Yanbu (Marafiq), announced the determination of the offering price range and the start of the book building process for the institutional segment.

The two companies announced that the price range for Marafiq was set between 41-46 riyals per share, according to Al-Arabiya.net.

The two companies added that the process of offering facilities represented about 73 million ordinary shares, which represents 29.24%, of the company’s issued capital, through the sale of existing shares by major shareholders, who own 5% or more of the company’s shares, and they are the Royal Commission Jubail and Yanbu, the Public Investment Fund, the Saudi Basic Industries Corporation (SABIC) and the Saudi Aramco Energy Company (SABCO) are the selling shareholders.

After taking into consideration the minority shareholders' share of 0.76% of Marafiq's capital, the percentage of shares available for trading upon listing will be 30% of the company's total shares.

The minimum number of shares that can be subscribed to for the participating classes is 100,000 shares, while the maximum is 12.49 million shares in Marafiq.

Participation in order book building is limited to categories qualified to participate in the order book building process in accordance with the instructions for book building and allocating shares in initial subscriptions issued by the Board of the Capital Market Authority.

The price of the offering for public subscription will be determined after the completion of the process of building the order book, to be followed by the process of subscribing to the individual segment. Final after the end of the individual subscription period.

In the event that individual subscribers subscribe to all the Offer Shares allocated to them in Marafiq, the subscription registry managers have the right to reduce the number of shares allocated to the participating classes to 51.1 million Offer Shares - as a minimum - representing 70% of the total Offer Shares.

The process of building the order book for the institutions segment in Marafiq starts on October 9, 2022 and ends on the 14 of the same month.