Riyadh – Mubasher: Saudi-based Arabian Centres Company on Tuesday announced that the net proceeds from its planned initial public offering (IPO) will be used in slashing debt along with achieving general corporate purposes, according to a statement.
The Saudi shopping malls operator, owned by Fawaz Alhokair Group, may raise about $1 billion from the IPO which will likely begin on 28 April, Bloomberg News reported, citing Arabian Centres Company’s CEO, Olivier Nougarou, as saying on a conference call.
On Monday, the Saudi Capital Market Authority (CMA) approved a request filed by the Saudi shopping malls operator to float a 20% stake, or 95 million shares, in an IPO.
The offering will include 65 million current shares to be sold by the existing shareholders and 30 million new shares to be issued by the company through a capital raise, the statement added.
Revenues of Arabian Centres Company recorded a compound annual growth rate (CAGR) of 6.2% to $576 million in fiscal year 2018 from $511 million in fiscal year 2016, along with an EBITDA margin of 64.9% in fiscal year 2018.
Samba Capital & Investment Management Company, Morgan Stanley Saudi Arabia, NCB Capital Company, and Goldman Sachs Saudi Arabia were appointed to act as joint financial advisors and joint bookrunners for the offering.
In addition, Samba Capital & Investment Management Company was hired to act as lead coordinator and lead manager.
Arabian Centre Company also hired Citigroup Saudi Arabia, Credit Suisse Saudi Arabia, EFG Hermes KSA, Emirates NBD Capital KSA, and Natixis to act as joint bookrunners.
In January, Fawaz Alhokair Group was reportedly planning to float a stake in its malls arm, Arabian Centres Company, on the Saudi Stock Exchange (Tadawul) in the second quarter of 2019, people familiar with the matter previously said.
