PIF launches accelerated book-building to sell 12 mln shares in Tadawul Group

Logo of Public Investment Fund (PIF)

The Public Investment Fund (PIF) announced today, Nov. 10, the launch of an accelerated book-building process to sell 12 million shares, or 10% of Saudi Tadawul Group Holding Co.’s (Tadawul Group) share capital, to institutional investors, according to a statement.

The fund also said that the offer price will be determined through the accelerated book-building process, which will begin immediately. The offering results will be announced on Nov. 11.

The selling process will be executed through negotiated transactions outside the scope of the market on Nov. 13, prior to market opening, as per the negotiated deals mechanism.

Institutional investors in the Kingdom and qualified foreign institutional investors are eligible to partake in the offering, in accordance with the rules for qualified foreign financial institutions. This is besides institutional beneficiaries of SWAP agreements with any CMA-authorized party to acquire and trade shares on the Saudi Exchange (Tadawul) on behalf of such beneficiaries, in addition to GCC investors (including companies and funds), PIF stated.

Accordingly, the offer shares will be made available to certain institutional investors outside the US, in accordance with the regulations set under the US Securities Act of 1933.

Remaining shares in Tadawul Group held by PIF will be subject to a 90-day lock-up undertaking.

The company will not receive any proceeds from the offering, which will not result in any dilution of the shares of other shareholders.

The offering is in line with PIF’s strategy to recycle its capital and invest in emerging and promising sectors in the local economy, the statement added.

HSBC Saudi Arabia and Morgan Stanley Saudi Arabia are acting as joint global coordinators for PIF. They are also, together with Al Rajhi Capital, joint bookrunners for the selling shareholder.

In November 2021, Tadawul Group had floated 36 million shares owned by PIF in an initial public offering (IPO). As much as 70% of these shares were allocated to institutions, the subscription of which was 121x covered. The remainder, or 10.8 million shares, were allotted for individual subscribers at SAR 105 apiece, with a minimum of 10 shares earmarked to each subscriber, according to Argaam’s data.

PIF currently holds 70%, or 84 million shares, of Tadawul Group’s total shares.

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