Saudi Arabia readies for next flotation

11 November 2014

Electrical Industries Company looking to raise $194m with initial public offering

Dammam-based Electrical Industries Company is looking to raise about $194m with an initial public offering (IPO) on the Saudi Stock Exchange (Tadawul).

The subscription period will open on 11 November and is set to close on 17 November.

The firm is offering 13,500,000 shares, which represents 30 per cent of its share capital. The shares are priced at SR54 ($14.4) a share.

Both institutional and individual investors can invest in the offering. The company has allocated 100 per cent of shares to institutional investors, but has given the lead managing bank the ability to reduce this allocation to 50 per cent of the offer shares if there is sufficient demand from individual investors.

The allotment of the final offer shares and the refund of any excess subscription funds are scheduled to take place on 24 November.

The local Samba Capital is the financial adviser, lead manager and lead underwriter on the offering, while the local Al-Rajhi Capital is the secondary underwriter.

Electrical Industries Company has a longstanding relationship providing electrical equipment to Saudi Electricity Company (SEC). The firm is set to benefit from the increasing level of investment in the kingdom’s power sector.

Electrical Industries Company’s IPO closely follows the $6bn offering by National Commercial Bank (NCB). 

NCB is Saudi Arabia’s largest bank by assets and was the last remaining unlisted bank in the kingdom.

The bank’s IPO proved popular among Saudi investors and was oversubscribed.

NCB shares are due to be listed on the Tadawul on 12 November.

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