Arabian Centres IPO: Subscription Period & Key Dates

Arabian Centres Co. will launch its initial public offering (IPO) for retail investors today, Thursday, May 9. The offering will extend today only until 11:59 PM.

Retail investors will subscribe to 9.5 million shares, at SAR 26 per share.

The IPO, which is expected to be the largest this year, is of particular interest to both analysts and investors from within and outside the Kingdom, as it is the first IPO in Saudi Arabia where institutions outside the Kingdom are allowed to participate directly in the subscription in accordance with Regulation S and Article 144A of the US Securities Act of 1933. This qualitative leap comes in line with the global economic outlook for the Saudi Vision 2030.

The Capital Market Authority (CMA) approved on April 15 a request from Arabian Centres Co. to float 95 million shares, or 20% percent of its capital in a public offering.

A 90 percent of total IPO shares were allocated for institutions, with the remaining 10 percent offered to retail investors.

A total of 65 million shares will be sold by existing shareholders, while 30 million shares will be issued by the company through a capital hike.

The IPO is the third offering on Tadawul year to date, after Maharah Human Resource Co., which kicked off yesterday. Al Moammar Information Systems Co. also launched its public offering in March.

Arabian Centres was established in 2002 as a closed joint stock company. It is a subsidiary of Fawaz Alhokair Group and specializes in mall management, tenant relations and leasing.