RIYADH: Marafiq, the Saudi Arabian utility whose shareholders include Aramco and Sabic, secured enough investor demand to fully cover its up to US$897mil (RM4.2bil) initial public offering (IPO) within hours of opening order books.
Marafiq is part of a late-year rush of IPOs in the Middle East even as markets worldwide are hit by inflation fears and the risk of an economic slowdown. A surge in oil prices at the start of 2022, as well as increased investor inflows, led to a flurry of listings in the Gulf, which notched up its best first half on record.
While a regional equity rally has since faltered and Saudi stocks briefly entered a bear market last month, IPOs have continued at a fast clip with issuers looking to take advantage of continued strong demand for share sales. Last month, a Saudi Arabian oilfield-services company also got enough orders for all shares on offer within hours.
Marafiq’s IPO is the largest in the kingdom since pharmacy chain Nahdi Medical Co raised US$1.4bil (RM6.5bil).
The company would have a market value of US$3.1bil (RM14.4bil) at the top end of the price range.
Marafiq has hired banks including HSBC Holdings Plc and Riyad Capital to manage the process.
Shareholders who own 5% or more in Marafiq are the Royal Commission for Jubail and Yanbu, Public Investment Fund, Saudi Aramco Power Co and Saudi Basic Industries Corp. — Bloomberg
