Riyadh – Mubasher: The individual investor subscription period for Dar Al Balad for Business Solutions Company’s initial public offering (IPO) has been concluded at a final offer price of SAR 9.75 per share.
The retail offering saw significant engagement from the Saudi investment community, resulting in a total demand of approximately SAR 231 million and a substantial oversubscription of the shares allocated to this tranche.
Aljazira Capital, acting in its multi-faceted role as Financial Advisor, Lead Manager, Underwriter, and Joint Bookrunner, announced that 90,231 individual investors applied for shares during the offering window.
This robust demand led to a coverage ratio of 375.71% for the retail portion of the IPO of the Middle East-focused Dar Al Balad for Business Solutions, according to a bourse filing.
Under the terms of the offering, 6.30 million shares were specifically earmarked for individual investors, representing 30% of the total shares offered to the public.
Each retail investor was guaranteed a minimum allocation of 10 shares. Beyond this minimum threshold, the remaining available shares were distributed among the subscriber base on a pro-rata basis.
This secondary allocation was determined by the size of each individual application relative to the total remaining volume of subscribed shares, resulting in an average allocation factor of 23.7% for the excess demand.
The successful completion of the retail phase has direct implications for the institutional portion of the offering, referred to as the Participating Parties, and in line with the offering structure, the shares initially set aside for institutional investors have been adjusted to account for the retail demand.
Consequently, the final allocation for Participating Parties has been set at 14.70 million shares, which constitutes 70% of the total offering.
The full offering prospectus remains the primary reference for the company’s financial standing and the regulatory framework governing this IPO. The transition to the next phase of the listing process will follow the standard procedures and timelines established by the Saudi stock market authorities.
Earlier, Chairman Abdullah Al Juraish said that the listing is a strategic milestone in the company’s journey.
