Arabian Company for Agricultural and Industrial Investment (the “Company” or “Entaj”), one of the leading poultry brands in the Kingdom of Saudi Arabia (the “Kingdom”), announces the price range for its initial public offering (the “IPO” or “Offering”) and the commencement of the institutional book-building period for Participating Parties.
The price range for the Offering has been set between SAR 46 and SAR 50 per share (the “Price Range”). The institutional book building period commences today, 9 February 2025G and will close at 3pm (KSA time) on 13 February 2025G.
On 30 September 2024G, the Capital Market Authority (the “CMA”) approved the Company’s application for registering its share capital and the Offering of 9,000,000 ordinary shares (the “Offer Shares”), representing 30% of the Company’s total issued share capital. The final offer price will be announced following the end of the institutional bookbuilding period.
The Offerings’ net proceeds will be distributed to the Selling Shareholder, which is Arabian Agricultural Services Company (ARASCO). The Company will not receive any part of the Net Offering Proceeds.
BACKGROUND TO THE OFFERING
The Company has obtained the necessary approvals from the Capital Market Authority and Saudi Exchange to proceed with the offering and listing process as shown below:
The Offering will consist of 9,000,000 ordinary shares (the “Offer Shares”), representing 30% of the Company’s total issued share capital.
The Offer Shares will be offered for subscription to Individual Subscribers and Participating Parties (as defined below).
In the event of sufficient demand from retail investors, the Financial Advisor, in coordination with the Company, shall have the right to reduce the number of Offer Shares allocated to Participating Entities to a minimum of eight million, one hundred thousand 8,100,000 ordinary Shares, representing 90% of the Offer Shares.
The Offer 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 CMA and the Saudi Exchange.
The Company appointed SNB Capital (“SNB Capital”) as the lead manager (“Lead Manager”), financial advisor (“Financial Advisor”), bookrunner (the “Bookrunner“), and underwriter (the “Underwriter“).
The CMA licensed receiving banks will act as Receiving Agents (collectively, the “Receiving Agents”) for retail investors, including SNB Capital, SAB Invest, Al Rajhi Capital, Saudi Fransi Capital Company, Alinma Investment Company, Riyad Capital Company, AlJazira Capital Company, Alistithmar for Financial Securities and Brokerage Company , AlBilad Capital Company, ANB Capital Company, Derayah Financial Company, Yaqeen Capital Company, Alkhabeer Capital Company, GIB Capital Company, and Sahm Capital Financial Company.
Please refer to the Prospectus for details on the expected timetable of the Offering.
Subscription for the Offer Shares is restricted to the following groups of investors:
Tranche (A): Participating Parties:
This tranche comprises the parties entitled to participate in the book-building process specified under the Book-Building Instructions issued by the CMA. This includes investment funds, Qualified Foreign Investors, GCC Corporate Investors, and certain other foreign investors under swap agreements (collectively referred to as the “Participating Parties” and each a “Participating Party). The number of Offer Shares to be provisionally allocated to the Participating Parties is nine million (9,000,000) Offer Shares, representing one hundred per cent. (100%) of the Offer Shares. The final allocation will be made after the end of the subscription period for Individual Subscribers (as defined in tranche (B) below) by the Financial in coordination with the Company using the discretionary allocation mechanism. As a result, some of the Participating Entities may not be allocated any Offer Shares. If there is sufficient demand from Individual Subscribers, the Financial Advisor shall have the right, in coordination with the Company, to reduce the number of Offer Shares allocated to Participating Entities to eight million, one hundred thousand (8,100,000) Offer Shares, representing ninety per cent. (90%) of the Offer Shares.
Tranche (B): Individual Subscribers:
This tranche comprises Saudi Arabian natural persons, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi spouse, who can subscribe for her own benefit in the names of her minor children on the condition that she submits proof that she is a divorcee or widow and the mother of her minor children, as well as any non-Saudi natural person resident in the Kingdom or GCC natural person who has an investment account and an active portfolio with one of the Receiving Agents (collectively, the “Individual Subscribers” and each an “Individual Subscriber”, and together with the Participating Entities, the “Subscribers”). A subscription for Offer Shares made by a person in the name of his divorced wife shall be deemed invalid and the applicant shall be subject to the sanctions prescribed by law. If a duplicate subscription is made, the second subscription will be considered void and only the first subscription will be accepted. A maximum of nine hundred thousand (900,000) Offer Shares representing ten per cent. (10%) of the total Offer Shares shall be allocated to Individual Subscribers. If Individual Subscribers do not subscribe in full to the Offer Shares allocated to them, the Financial Advisor may, in coordination with the Company, reduce the number of Offer Shares allocated to Individual Subscribers in proportion to the number of Offer Shares subscribed by them.
