Arabian Centres plans largest Saudi IPO in five years
Company aims to sell 95m shares, or 20% of the free float, to raise $1b
Dubai: Saudi Arabia-based mall developer Arabian Centres Company is planning to hit the primary market through an Initial Public Offering (IPO) to raise up to $1 billion (Dh3.67 billion), which analysts say would be the largest offering since the NCB’s $6 billion IPO in 2014.
The company plans to sell 95 million shares, or 20 per cent of the free float, it said in an emailed statement. Proceeds will be used to reduce debt and for general corporate purposes.
“Subsequently, the company believes it will be in a prime position to achieve its growth plans as set out in the prospectus to be published in due course in connection with the offering,” the company said in a statement.
The shares will be listed on Saudi Arabia’s Tadawul bourse.
“This IPO would be of interest to prospective investors. Most of this IPO would taken by institutions but valuation is the key. We would have more clarity once the pricing is announced,” Mohammad Shabbir, head of Funds and Portfolios at Saudi Kuwaiti Finance House (SKFH), told Gulf News.
The company reported robust revenues of $576 million in 2018.