Marafiq completes SAR 3.36b IPO and listing on Saudi’s Tadawul
The Power and Water Utility Company for Jubail and Yanbu’s (“Marafiq”) has become a publicly traded company on the Saudi Stock Exchange (“Tadawul”). Marafiq raised SAR 3.36 billion (USD 897 million) through its initial public offering (“IPO”), and now trades on the Saudi Exchange under the ticker 2083. With a market capitalization on listing of USD 3.1 billion (SAR 11.5 billion), the offering comprised the sale of 29.24% of Marafiq’s shares (73.1 million shares).
The Marafiq IPO was marketed to institutional and individual investors in various jurisdictions with an intention to use the net proceeds from the offering to further support Marafiq’s development and expansion plans. It was set at a final offer price per share of USD 12.24 (SAR 46) which was at the top end of the price range initially announced. Marafiq’s IPO drew USD 52.5 billion (SAR 197 billion) in demand, significantly proving oversubscription 59 times among local and international investors and making it the largest IPO in the Kingdom since the listing of Nahdi Medical Company in March 2022.
Marafiq is a joint stock Saudi Arabian company that provides water and power services in strategic Royal Commission industrial cities of the Kingdom. Headquartered in Jubail, Saudi Arabia, the leading integrated utilities provider operates under highly restricted environmental guidelines and implements sustainable practices with an aim to provide the communities it services in the industrial cities of Jubail and Yanbu and beyond, better living standards.
Abuhimed Alsheikh Alhagbani Law Firm (“AS&H”) in co-operation with Clifford Chance has acted as issuer’s counsel to Marafiq. The AS&H team was led by partners Mansoor Alhagbani and Omar Rashid. Senior associate Rakan Kawar was lead associate and was supported by senior associate Mohammed Al-Esheikh and associates Haifa AlDamegh, Ribal Wahid, Mohammed Ghazzawi, Abdullah Alhumaidan, Aljoahra BinAhmed, Alia Al-Kadi and Abdulaziz Al-Mubarak.
The Clifford Chance team was led by Frankfurt-based US Securities partner George Hacket who was supported by counsel Axel Wittmann (Munich) and associate Lucy Liu (Frankfurt).
Legal advisors, Abdulaziz Alajlan & Partners alongside Baker McKenzie, London, have advised the joint underwriters on Marafiq’s IPO and listing. The syndicate included HSBC Saudi Arabia and Riyad Capital as joint financial advisors, bookrunners and underwriters, with HSBC Saudi Arabia as the lead manager. Saudi National Bank (“SNB”), Riyad Bank, Alrajhi Bank, SAAB and Banque Saudi Fransi acted as receiving banks.
The cross-border team was led by Nadine Nassar (Legal Advisors, Riyadh, pictured) and Charles Farnsworth and George Marshall (Baker McKenzie, London). Further support was provided by capital markets experts including Reema Al Salem and Lama Al Habib of Legal Advisors, Riyadh.