Entaj completes allotment of shares following IPO
RIYADH, 6 days ago
Arabian Company for Agricultural and Industrial Investment (Entaj), one of the leading poultry brands in Saudi Arabia has announced the successful completion of the individual investor offering period and the final allotment of the offered shares in relation to the company’s initial public offering (IPO).
Following the completion of the institutional book-building period, which set the final offer price at SAR50 per share and resulted in an oversubscription of 208.4 times of the total offered shares, the individual investors offering took place from February 26 to 27.
The number of shares that were allocated to the Individual Investors tranche was 900,000, representing 10% of the total offer shares. The offering saw 499,021 individual investors place orders totaling SAR1.4 billion, reflecting a subscription coverage of 30.2 times for this tranche, the company said.
The company allocated a minimum of 1 share to each individual investor, with the remaining shares allocated on a pro-rata basis, based on the size of demand, with an average allocation factor of 1.5%.
Based on the results of the retail subscription process, the shares allocated to participating parties will be reduced to 8,100,000 shares, representing 90% of the total offer shares.
The final offer price of SAR50 implies a market capitalisation of SAR1.5 billion (approximately $400 million) at listing. Following the listing, the company is expected to have a free float of 30% (9,000,000) of its total shares (30,000,000).
The shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the offering and listing formalities with both the CMA and the Saudi Exchange, the company said. – TradeArabia News Service
