Riyadh Cables issues prospectus to float 33 mln shares on Tadawul

Logo of Riyadh Cables Group Co.

Riyadh Cables Group Co. issued the prospectus related to offering 33 million shares, or 22% of capital, in an initial public offering (IPO) on the Saudi Exchange (Tadawul).

 The company is capitalized at SAR 1.5 billion, divided into 150 million shares.

On Oct. 17, the Capital Market Authority approved the company’s application to offer 33 million ordinary shares, or 22% of the share capital.

Participating parties: This tranche comprises the parties entitled to participate in the book-building process as specified under the book-building instructions. The number of shares that will be allocated initially is 33 million, representing 100% of the total IPO. The final allocation of the offer shares will be made after the end of the subscription period for individual investors. The lead managers shall have the right to reduce the number of shares allocated to participating parties to 29.7 million, representing 90% of the total offer shares.

Individual investors: This tranche comprises Saudi Arabian natural persons, in addition to any non-Saudi natural person who is resident in the Kingdom or any GCC natural persons, provided they have a bank account with one of the receiving entities and are allowed to open an investment account. The number of shares offered for retail investors amounts to 3.3 million shares maximum, or 10% of the total offered shares.

The book-building process will run for five days, from Nov. 6 to 10, 2022.

The retail offering is slated to run for two days starting Nov. 21.

Established in 1984 in Riyadh Second Industrial City, Riyadh Cables has factories in Saudi Arabia, the UAE, and Iraq. The firm produces all types of low, medium and high-pressure cables, in addition to control cables and electrical wires.