BinDawood retail IPO oversubscribed by 1,396%

BinDawood retail IPO oversubscribed by 1,396%

BinDawood Holding Company, one of the leading grocery retail operators of hypermarkets and supermarkets in the Kingdom of Saudi Arabia, successfully completed the retail offering in relation to its Initial Public Offering (IPO) of shares.

Its retail offering oversubscribed by 1,396%, according to NCB Capital, the lead manager of the offering; with Goldman Sachs Saudi Arabia and J.P. Morgan Saudi Arabia Company, as joint-financial advisors.

Following the completion of the institutional book-building process, the retail offering took place from Oct. 8 to 12, 2020. A total of 324,046 individual investors subscribing to invest SR3.06bn at the IPO price of SR96 per share; making it oversubscribed by 1,395.91%.

Retail investors also started on Oct. 8 subscribing to around 2.29mn shares of BinDawood at SR96 each, after completing the institutional book-building process. The institutional offering was 4,870% oversubscribed.

The company also allocated a minimum of 7 shares to each retail subscriber included in the subscription request. The remaining shares allocated on a pro rata basis at around 0.05964%; based on the size of each subscriber’s request compared to the total remaining subscribed shares.

Final allocations and refunds (if any) will be no later than Oct. 20, 2020.

The retail offering also followed the completion of the institutional book-building process. The book-building process generated an order book of SR106.9 billion.

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