Sulaiman Al Habib's IPO subscribed 83x, investors inject SAR 217 bln

The initial public offering (IPO) of Dr. Sulaiman Al Habib Medical Group Co. (HMG) was subscribed around 83 times, as investors injected nearly SAR 217 billion, according to a statement by the IPO financial advisor and underwriter, Jadwa Investment and Riyad Capital.

The retail offering ended on Tuesday, March 3, 2020, as 5.25 million shares ( or 10% of the total offered shares amounting to 52.5 million) were allocated to the retail investors.

A total of 224,440 retail investors subscribed to 5.25 million shares at SAR 50 each at a total value of nearly SAR 1.9 billion. The retail offering was 710% oversubscribed.

Ten shares minimum will be allocated to each retail subscriber, and the remaining shares will be allocated pro rata with an allotment  ratio of around 8.6%.

The shares which were primarily allocated to the institutional investors will be cut to 47.25 million shares (or around 90% of the total offered shares amounting to 52.5 million shares).

The refunds allotment process will likely be completed today, Monday, March 9, 2020.

Thus, investors subscribed to all the offered shares amounting to 52.5 million at SAR 50 each, totaling around SAR 2.6 billion, which represents the maximum of the price range set during the book-building process.

Accordingly, the IPO was 8270% oversubscribed (83 times) with funds exceeding SAR 217 billion, as follows:

Institutional tranche

Local investors: SAR 195.4 billion (74.4 times) including all orders placed by the government institutions the Tadawul-listed companies , privately-owned firms, financial entities, authorized persons and public funds.

As for the orders placed by the private funds and investment portfolios managed by authorized persons, the value of all orders was not included but was recorded based on the net asset value. The number of the local investors amounted to 1,503.

GCC investors: SAR 10.8 billion (4.1 times) including investment funds, and GCC companies. The number of the GCC investors amounted to 72.

Foreign Investors: SAR 9.0 billion (3.4 times) including qualified foreign investors (QFIs) comprising sovereign funds, foreign investment companies and swap agreements. The number of the foreign investors reached 58.

The retail tranche

Retail investors: SAR 1.9 billion (7.1 times of the retail offering, or 0.7 times of the total offered shares) were injected by more than 224,000 investors.

The company will be listed on the Saudi Stock Exchange (Tadawul) after finalizing all the regulatory approvals. The listing date will be unveiled.