The Power and Water Utility Company for Jubail and Yanbu (Marafiq), which is offering 29.24% of the its issued share capital through an IPO, has announced the price range for the offer shares at between SR41 ($11) and SR46 per share.

The company also announced the commencement of the participating parties’ bidding and book-building period, a release said.

The offering comprises 73,094,500 shares to be sold by the current four substantial shareholders. The total offering size is expected to be between SR2.98 billion ($799 million) and SR336 billion ($897 million), implying a market capitalisation at listing between SR10.25 billion ($ 2.73 billion) and SR11.50 billion ($3.07 billion).

Free float of 30pc

The company is expected to have a free float of 30% of the entire issued share capital of the company at listing.

The IPO will comprise an offer of 73,094,500 offer shares to participating parties, this tranche comprises a number of institutions and companies, including investment funds, qualified foreign investors and GCC investors with legal personality who are entitled to participate in the book building process as specified under the Instructions for Book Building Process and Allocation Method in Initial Public Offerings issued by the Capital Market Authority Board pursuant to Resolution No. 2.94-2016 dated 15/10/1437H (corresponding to 20/07/2016G), as amended by CMA Board Resolution No. 3-102-2019 dated 18/01/1441H (corresponding to 17/09/2019G) (the “Book Building Instructions”).

Following the completion of the book-building process of the participating parties tranche, the offer shares will also be offered to individual investors, this tranche comprises Saudi natural persons, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi individual, who is entitled to subscribe to the offer shares for her own benefit or in the names of her minor children, on the condition that she proves that she is a divorcee or widow and the mother of her minor children, any non-Saudi natural person who is resident in the kingdom or GCC nationals, in each case, who have a bank account, and are entitled to open an investment account, with one of the receiving agents.

Participating parties

Initially, 100% of the offer shares will be provisionally allocated to the participating parties. This may be reduced by the financial advisors to 51,166,150 offer shares (representing 70% of the total offer shares) depending on the level of demand by Individual Investors. The final number of offer shares allocated to the participating parties will be accordingly adjusted based on subscription from Individual Investors.

The offer shares to participating parties will be made as follows:

*Participating parties registered in the kingdom may submit a bid form or may apply for subscription electronically to a bookrunner by email during the bidding and book-building period, and in accordance with the bidding guidelines communicated by the financial advisors (as defined below) and bookrunners. The bid forms will be made available by the financial advisors and bookrunners. Additionally, participating parties registered in the kingdom must complete the subscription form after the allocation of offer shares based on the number of offer shares that is provisionally allocated to them.

Individual investors

The offer shares to individual investors will be made as follows:

*Individual Investors are required to fill and submit a subscription form. Individual Investors who have participated in recent initial public offerings in the kingdom can also subscribe through the internet, telephone banking or automated teller machines (ATMs) of any of the receiving agents branches that offer any or all such services to its customers, provided that the following requirements are satisfied: (i) the Individual Investor must have a bank account at a receiving agent which offers such services; and (ii) there have been no changes in the personal information or data of the Individual Investor (by way of exclusion or addition of any member of his family) since such person last participated in an initial public offering.

Substantial shareholders

Substantial shareholders who own 5% or more of the Shares at the time of Listing, and comprise (i) the Royal Commission for Jubail and Yanbu, (ii) the Public Investment Fund (PIF), (iii) Saudi Aramco Power Company (Sapco) (a wholly owned subsidiary of the Saudi Arabian Oil Company (Saudi Aramco)) and (iv) Saudi Basic Industries Corporation (Sabic) (the substantial shareholders), may not dispose of any of their shares for a period of six months after listing, and the company may not list additional Shares on the Saudi Exchange for a period of six months after listing, in each case from the date on which trading of the company’s shares commences on the Saudi Exchange.

CMA approval

The CMA’s approval has been obtained for the registration and offering of the company’s shares on 30/02/1444H (corresponding to 26/09/2022G), and the Saudi Exchange Company’s approval has been obtained for the listing of the company’s shares on the Saudi Exchange (Tadawul).

With respect to the offering, the company has appointed HSBC Saudi Arabia as Joint Financial Advisor, Bookrunner, Joint Global Coordinator, Lead Manager and Underwriter; and Riyad Capital as Joint Financial Advisor, Bookrunner, Joint Global Coordinator and Underwriter.

Al Rajhi Bank, Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank have been appointed as receiving agents (collectively, the receiving agents).