United International sets IPO price range at SAR 120-132/share

28/10/2024 Argaam
Logo ofUnited International Holding Co.

Logo of United International Holding Co.


United International Holding Co. set the price rage for its initial public offering (IPO) on the Saudi Exchange (Tadawul) between SAR 120 and SAR 132 per share, HSBC Saudi Arabia, the financial advisor, lead manager, book runner and underwriter, said in a statement to Tadawul.

 

The price range translates to an offering size SAR 900 million and SAR 990 million, implying an equity value between SAR 3 billion and SAR 3.3 billion.

 

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The book-building process for institutional investors will run from Oct. 28 through 5 pm on Nov. 4.


On Oct. 24, United International and the selling shareholder received binding obligations from Al Zamil Investment Group, Tawuniya Cooperative Insurance Co. and Abdulkadir Al Muhaidib & Sons Co. that they will subscribe as major shareholders to 1.17 million shares divided equally between them. These represent 15.6% of the offered shares.

 

The book-building process is limited to qualified categories of investors.

 

The offering price will be set once the book-building process is complete.

 

The company will allocate for participating categories a total of 7.5 million ordinary shares, or 100% of the shares on offer.

 

The financial advisor will have the right to reduce the number of their allocated shares to 90% of the total offered shares, at 6.75 million minimum. A total of 1.17 million shares will be allocated for major shareholders in all cases.

 

Accordingly, 5.58 million shares will be allocated to participating categories, excluding shares allocated to major shareholders and retail investors.

 

United International, a subsidiary of United Electronics Co. (eXtra), manages associates and implements investment partnerships in real estate and securities, according to data available with Argaam.

 

The company issued recently its prospectus for offering 7.5 million shares, or 30% of its capital, on the Main Market.

 

The retail offering will run from Nov. 19-20.

 

In June, the Capital Market Authority (CMA) approved the company's application to float its shares on the main market.

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