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Islamic Finance

Saudi Bindawood prices IPO at top end, with $29 billion in bids

Published 07 Oct,2020 via Bloomberg Markets - Saudi Arabia’s BinDawood Holding Co. is set to sell shares at the top of the price range for its initial public offering following a short delay to allow investors to amend their orders in light of previously undisclosed third-party loans.

The offer was priced at 96 riyals ($25.59) a share, the company said on Wednesday. BinDawood is set to raise about 2.19 billion riyals from the listing and will be valued at just under 11 billion riyals.

The listing was about 49 times oversubscribed, generating orders worth 106.9 billion riyals. This indicates investors were unfazed by the delay and the disclosure of 284 million riyals of related-party transactions midway through the bookbuilding.

BinDawood had said it lent the money to Amwaj Real Estate Co. and AQimma Hotels Co. between July and September and the loans have since been repaid. The period for buyers to make changes to or withdraw their IPO orders ended on Monday.

A planned offering to retail investors will take place from Oct. 8 to Oct. 12.

The IPO comes amid a boom in online retail spending and as Saudi Arabia sees more companies listing on the local exchange. BinDawood, which operates the BinDawood and Danube brands, said first-half profit rose 82% from the year-ago period.

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Matthew Martin