Saudi utility partly owned by Aramco and PIF sets IPO price range


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DUBAI — Saudi Arabia’s Power and Utility Company for Jubail and Yanbu (Marafiq) has set the price range for its potential initial public offering at 41 to 46 riyals ($10.91-12.24) a share, HSBC said on Sunday.

HSBC and Riyad Capital are financial advisers, joint global coordinators and bookrunners on the IPO, which began book-building on Sunday for a roughly 30% free float of the company, HSBC said in a stock exchange filing.

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Marafiq, which aims to list on Riyadh’s Tadawul bourse, will sell 29.24% of its issued share capital, just over 73 million shares, by selling shares held by investors owning stakes of 5% or more.

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Those “substantial” shareholders are the Royal Commission for Jubail and Yanbu, the sovereign Public Investment Fund (PIF), oil giant Aramco subsidiary Saudi Aramco Power Company (SAPCO) and Saudi Basic Industries Corporation, which Aramco owns a 70% stake in. Each of the four owns 24.81%, according to Refinitiv data.

The final share price will be determined after the book-building is completed on Friday. The subscription period for individual investors will run from Oct. 26-29. Final share allocations will be announced on Nov. 2.

Riyad Capital is also underwriter on the IPO and Al Rajhi Bank, Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank are receiving agents.

Marafiq was set up in 2000 to provide integrated utility services in the kingdom’s industrial cities of Jubail and Yanbu.

($1 = 3.7580 riyals) (Reporting by Yousef Saba)


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