Saudi Arabia’s Entaj sets final offer price for IPO

Arabian Company for Agricultural and Industrial Investment (Entaj), one of the kingdom’s leading poultry brands, has announced the completion of the book-building process for its initial public offering (IPO), revealing the final offer price.

The final offer price has been set at SAR50 per share, which is at the top end of the previously announced price range.

This pricing reflects an implied market capitalisation of SAR1.5bn (approximately $400m) at listing.

Institutional demand for the IPO was overwhelming, with the books being covered within hours of opening.

Read: Saudi Arabian poultry producer Entaj plans to sell 30% stake in Riyadh IPO

Orders placed by institutional investors exceeded SAR93bn (approximately $25bn), representing a coverage ratio of 208.4 times.

The subscription period for individual investors is set to begin on Wednesday, February 26, and will close at 2pm (local time) on Thursday, February 27.

Entaj IPO offer details

• The final offer price for the shares has been confirmed at SAR50 per share, implying a market capitalization of SAR1.5bn at listing.
• The offering will consist of 9,000,000 ordinary shares, representing 30 per cent of the company’s total issued share capital. These shares will be sold by the selling shareholder.
• Hundred per cent of the offer shares have been provisionally allocated to institutional investors who participated in the book-building process. Should retail investor demand be sufficient, the number of shares allocated to institutional investors may be reduced to 8,100,000 shares (90 per cent of the offer shares).
• The shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the offering and listing formalities with both the Capital Market Authority (CMA) and the Saudi Exchange.

Advisors and receiving agents

SNB Capital has been appointed as the lead manager, financial advisor, bookrunner, and underwriter for the offering.

Other financial institutions serving as receiving agents for retail investors include SAB Invest, Al Rajhi Capital, Saudi Fransi Capital, Alinma Capital, Riyad Capital, AlJazira Capital, Alistithmar for Financial Securities and Brokerage, AlBilad Capital, ANB Capital, Derayah Financial, Yaqeen Capital, Alkhabeer Capital, GIB Capital, and Sahm Capital.