HSBC Saudi Arabia Announces the Price Range and Start of Institutional Book-building Period for the Initial Public Offering of United International Holding Company
On behalf of United International Holding Company (“UIHC” or the “Company”), HSBC Saudi Arabia in its capacity as Sole Financial Advisor, Lead Manager, Joint Bookrunner and Underwriter on the initial public offering of UIHC announces the Offering price range, as well as the commencement of the institutional book-building period; as per the following details:
- The price range for the Offering has been set between SAR 120 and 132 per share (the “Price Range”), which translates to an offering size SAR 900 million and SAR 990 million, implying an equity value between SAR 3,000 million and SAR 3,300 million.
- The Offering is comprised of a sale of seven million five hundred thousand (7,500,000) ordinary Shares (the “Offer Shares”), representing 30% of UIHC’s current share capital.
- On 24 October 2024, UIHC and the selling shareholder received a binding undertaking with each of Zamil Group Investment Company, Abdulkader Al Muhaidib & Sons Company and The Company for Cooperative Insurance (Tawuniya) (together referred to as the “Cornerstone Investors”), through which the Cornerstone Investors have committed to collectively subscribe for 1,171,875 shares at the Offer Price (split equally), representing 15.6% of the Offer Shares.
- Bidding and book-building period for Participating Parties starts from Monday 28 October 2024 and closes at 5:00PM KSA time on Monday 4 November 2024.
- The minimum number of Offer shares to be applied for by the Participating Parties is 50,000 shares, while the maximum number of shares is 1,249,999 shares.
- The participation in the book-building process is confined to the Participating Parties in accordance with the Instructions for Book Building Process and Allocation Method in Initial Public Offerings issued by the Board of the Capital Market Authority.
- The final price per Offer Share will be determined after the completion of the book-building process, to be followed by the Individual Subscribers subscription process, the number of Offer Shares that will initially be allocated to the Participating Parties during the book-building process is 7,500,000 ordinary Offer Shares, representing (100%) of the total Offer Shares. Of which, 1,171,875 Shares will be allocated to Cornerstone Investors, if there is sufficient demand from Individual Investors, the Lead Manager shall have the right, in consultation with the Company, to reduce the number of Offer Shares allocated to Participating Parties to a minimum of 6,750,000 Shares, representing (90%) of the total Offer Shares. Provided that this reduction is not applied to the Cornerstone Investors and that the final allocation to the Cornerstone Investors is 1,171,875 from the number of Offer Shares in all cases. Accordingly, 5,578,125 shares of the Offering Shares will be allocated to the Participating Parties excluding the Offer Shares allocated to the Cornerstone Investors and Individual Investors. The number and percentage of the Offer Shares to be allocated to Participating Parties will be determined as deemed appropriate by the Financial Advisor in coordination with the Issuer.
For more information and for the prospectus, please visit the Capital Market Authority website (www.cma.org.sa) and UIHC website (www.unitedholding.com.sa).
Date: 28 October 2024