FILE PHOTO: Makkah Mall, one of the shopping malls operated by Arabian Centres, owned by Fawaz Alhokair Group, is pictured in Makkah, Saudi Arabia, April 17, 2019. REUTERS/Waleed Ali/File Photo
May 8, 2019
By Hadeel Al Sayegh and Saeed Azhar
DUBAI (Reuters) – Mall operator Arabian Centres has priced its initial public offering at the lower end of an indicative price range and is set to raise 2.47 billion riyals ($659 million), two sources said.
That would make it the second biggest IPO in Saudi Arabia since National Commercial Bank raised $6 billion in 2014, Refinitiv data showed.
The company priced its IPO at 26 riyals per share, the sources said, against a price range of 26 to 33 riyals per share for the sale of 95 million shares.
The institutional tranche of the public share sale has been covered, said one of the sources and a third source.
Owned by Fawaz Alhokair Group, the offering will be the first in the kingdom under Rule 144a, which allows the sale of securities primarily to qualified institutional buyers in the United States.
Arabian Centres owns 19 malls, making it the leading owner and operator of shopping malls in Saudi Arabia by total gross leasable area as of the end of 2018, a sale prospectus released on April 28 showed.
Gross proceeds from the sale of new shares would be used for debt repayment, the document said. The deal comprises 65 million existing shares being sold by the current shareholders and 30 million new shares, with a listing scheduled for late May.
Morgan Stanley, Samba Capital, NCB Capital, and Goldman Sachs are the joint financial advisers and bookrunners for the IPO. Other bookrunners include EFG Hermes KSA, Citigroup, Emirates NBD Capital, Credit Suisse, and Natixis.
(Reporting by Hadeel Al Sayegh and Saeed Azhar, editing by Louise Heavens)