East Pipes issues prospectus to float 6.3 mln shares on Tadawul

Logo of East Pipes Integrated Company for Industry

East Pipes Integrated Company for Industry announced today, Jan. 3, the prospectus for its initial public offering (IPO) of 6.3 million shares, representing 30% of capital, on the Saudi Exchange (Tadawul).

The company obtained the approval of the Capital Market Authority on the IPO on Sept. 29, 2021.

The period of applications registration and book building will run for seven days from Jan. 11 to Jan. 17.

The retail subscription period will run from Jan. 24 to Jan. 25.

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 6.3 million, representing 100% of the total IPO. 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 5.67 million shares, 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 630,000 shares maximum, or 10% of total offered shares.

Company Profile

East Pipes Integrated Company for Industry was established as a limited-liability company in Dammam on May 30, 2010, with SAR 500,000 capital.

On Sept. 22, 2020, the company converted into a shareholding company, with SAR 76 million capital. The company's extraordinary general assembly meeting approved in December, 2020 rebranding the company and increasing its capital to SAR 210 million.

The company’s activities comprise the following: Manufacture of pipes; manufacture of pipes, tubes and hollow shapes from iron and steel; manufacture of tubes, pipes, hollow forms, and pipes and tubes connections; processing and painting metals by refinement and polishing.

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