Nayifat’s retail offering closes today with SAR 2.5 bln in orders

Logo of Nayifat Finance Co.

Nayifat Finance Co. (NFC), along with its financial advisor HSBC Saudi Arabia, announced today, Nov. 15, the close of retail investors’ subscription period for its initial public offering (IPO) on Saudi Exchange (Tadawul).

The retail offering was 20.95 times oversubscribed, as more than one million orders were placed at a total value of nearly SAR 2.5 billion.

On Sept. 29, the Capital Market Authority (CMA) approved the company's request to offer 35 million shares, or 35% of its SAR 100 million share capital, in an IPO.

The company allocated 90% of the total offered shares to institutional investors, while the remaining 10% were allocated to retail subscribers.

Subscription for institutional investors ended last week. Investors injected SAR 162 billion, with the offering covered 136x, as follows:

- Saudi companies including Tadawul-listed firms, private companies, insurers, and other financial institutions (92x subscribed),

- Public as well private equity funds and managed investment funds (37x)

- Non-Saudi investors (5x)

- Government institutions (2x).

The shares offered to the institutional investors were cut to 31.5 million, or 90% of the total offered shares, as per the retail investors’ turnout.

A minimum of three shares were allocated for each subscriber, while the remaining shares were distributed pro rata. Surplus refunds, if any, will be paid latest by Nov. 15.

The free float shares are expected to reach 35% of capital upon the share listing.

Retail investors started, on Nov. 7, subscription to 3.5 million shares at SAR 34 a share, determined by the book-building process, Argaam reported.