United International Holding Company announced that the final offering price for its IPO will be set at the upper end of the price range, at SAR 132 per share.
As a result, the company is expected to raise SAR 990 million by offering 30% of its capital on the Saudi Stock Exchange (Tadawul).
Strong Demand for the IPO
United International, the owner of “Tasheel Finance” and “Procco Financial Services” noted the success of its institutional investors’ subscription.
The total value of orders during the book-building process for participating parties reached nearly SAR 131 billion (USD 35 billion), with a coverage ratio of approximately 132 times.
The subscription for individual investors is scheduled for November 19 and 20.
The final allocation of the offering shares will be announced on November 25, with any refunds of excess subscription monies to be made by November 28.
So what
Upon listing on the local stock exchange, the company’s market value will reach SAR 3.3 billion (approximately USD 880 million).
The IPO process for United International, a subsidiary of “eXtra”, involves the sale of 7.5 million shares in the main market, TASI.
The company has secured commitments from three major investors to subscribe to 390,625 shares at the offering price, representing a 1.6% stake each.
Some context
Thamer AlSaeed, Head of Asset Management at “Rassanah Capital” explained that the increased demand for United International’s IPO is due to the impact of its parent company.
He also pointed out that “eXtra” has consistently demonstrated its ability to achieve “sustainable growth” in its profits.
In an interview with “Al Arabiya Business,” AlSaeed highlighted strong investor confidence in “eXtra’s” performance.
He also noted that financing companies have seen good demand, achieving excellent profit margins for investors and partners amid rising demand for financing.
However, the increase in interest rates over the past two years has affected some financing companies due to the higher cost of capital.
Still, AlSaeed believes that his company’s business model remains strong and is reflected in its results.
The company recorded net profits of SAR 156.3 million in the third quarter of this year, an increase of approximately 32% YoY.
It plans to use United International’s IPO proceeds to fully repay its debts and distribute exceptional dividends to shareholders.
Additionally, part of the funds may be used to purchase government bonds, Mohamed Galal, CEO of the company, said in an interview with “Asharq.”
Galal mentioned that “eXtra” is working to improve its balance sheet as part of its expansion plans over the next three years, which supports its strategy of continuing dividend distributions.
Now what
Tamkeen Human Resources has allocated at least 4 shares per person for individual subscribers who participated in its initial public offering.
The total number of shares allocated to individual investors is approximately 1.6 million shares, representing 20% of the total offering.
The total number of individual subscriber requests reached nearly 389,000, with a total value exceeding SAR one billion. This resulted in a coverage of the total offered shares for the group by about 14.43 times.
The book-building process for institutional investors saw demand worth SAR 55 billion, including a wide range of investors.
The total number of shares offered to this category was covered about 138.2 times.
The final offering price was set at 50 SAR per share.
The total offering size is SAR 397.5 million.
Tamkeen specializes in meeting local market needs for workforce recruitment and development.
It is expected that 30% of the company’s shares will be listed for free trading on “TASI.”
