BinDawood issues prospectus to float 22.86 mln shares on Tadawul

BinDawood Holding issued on Monday a prospectus for its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul).

BinDawood will float 22.86 million shares, or 20% of its share capital.

On June 30, 2020, the Capital Market Authority (CMA) approved BinDawood’s request to sell 22.86 million shares, or 20% of its capital, in an IPO.

The IPO targets two tranches:

Participating parties

The tranche comprises institutions and companies, including qualified foreign investors and firms, Gulf investors and legal personalities. It includes all categories of investors entitled to participate in the book-building process.

A total of 22.86 million shares or 100% of the offering size will be allocated to institutional investors, subject to a scale-back to 90% or 20.57 million shares.

The final allocation will follow the completion of the retail offering.

Retail investors

The tranche comprises Saudi nationals, including any Saudi female divorcees or widows with minor children from a non-Saudi father, and any non-Saudi natural person who is a resident in the Kingdom and any GCC national, in each case who has a bank account with one of the receiving entities.

Up to 10% of the offering size or 2.286 million shares will be allocated to this tranche.

The book-building process for institutional investors will run from Sept. 13-22, while the retail offering will open from Sept. 27-29.

Key highlights:

Akasiya Star Trading Co. Ltd. will be the largest shareholders in the Saudi grocer following the share sale with a 67.57% stake. The following table illustrates the major shareholders before and after the IPO:

Major Shareholders
Shareholder	Number of shares before IPO (mln shares)	Stake %	Number of shares after IPO (mln shares)	Stake %
Akasiya Star Trading Co. Ltd.	96.54	84.47 %	77.23	67.57 %
Abdullah BinDawood Sons Co. Ltd.	9.76	8.54 %	7.80	6.83 %
Commercial Growth Development Co.	8.00	7.00 %	6.40	5.60 %
Public	--	--	22.86	20.00 %
Total	114.30	100.00 %	114.30	100.00 %

Company’s Profile
Company	BinDawood Holding Co.
Market	TASI - Main Market
Main activities	Holding companies i.e. assets (owning controlling-levels of equity) of a group of subsidiary corporations and whose principal activity is owning the subsidiaries
Status	Active
Capital	SAR 1.143 bln

IPO Summary
Issue percentage (%)	20%
Number of shares offered	22.86 mln shares
IPO Price	Determined through book building process
Qualified subscribers	-Participating categories include a group of institutions, companies, QFIs, legal entities and GCC investors. -Retail investors.
IPO minimum size for retail investors	10 shares
IPO minimum size for participating categories	100,000 shares
IPO maximum size for retail investors	571,500 shares
IPO maximum size for institutional investors	5.71 mln shares
Registering requests and book building period	Sept. 13-22
IPO Period	Three business days, starting Sept. 27 to Sept. 29
Final allotment of IPO shares	Oct. 1, 2020
Surplus repayment	Oct. 1, 2020

Additional Information
Lead manager, underwriter	NCB Capital
Financial advisors	Goldman Sachs Saudi Arabia, J.P. Morgan Saudi Arabia
IPO coordinators	Goldman Sachs Saudi Arabia, J.P. Morgan Saudi Arabia, NCBC
Institutions book runners	Goldman Sachs Saudi Arabia, J.P. Morgan Saudi Arabia, GIB Capital, NCBC
Main institutions book runner	GIB Capital
Underwriters	Goldman Sachs Saudi Arabia, J.P. Morgan Saudi Arabia, GIB Capital, NCBC
Receiving banks	NCB, Al Rajhi Bank

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