Bawan Holding will launch an initial public offering (IPO)
Bawan Holding will launch an initial public offering (IPO) for retail investors on Wednesday, November 27, 2013.
The company obtained the approval of the Capital Market Authority (CMA) to issue 15 million shares, or 30% of capital. The subscription will continue for seven days, including Tuesday, December 3. The receiving entities will start receiving applications from retail investors for subscription to 7.500 million shares at SAR 36 each.
The receiving entities are Banque Saudi Fransi, Samba Financial Group, National Commercial Bank, Riyad Bank and Saudi Investment Bank. The book building process was completed successfully with a coverage ratio of 640%.
The decision to float 30% of capital reflects the company’s strategic vision that is aimed at securing a leading position in the electrical industries, metal, wood and concrete sectors, said Bawan chairman Abdulah AlFozan.
“This stage mirrors Bawan’s continued successes and boosts its current position and future expansion plans which will reflect positively on shareholders,” said Al Fozan.
Bawan recorded SAR 129 million earnings in the first nine months of 2013, a rise of 38% compared with SAR 94 million a year earlier. The company’s revenue also grew 14% to around SAR 1.8 billion.