Legal Advisors, Abdulaziz Alajlan & Partners alongside Baker McKenzie, London have advised Saudi shopping mall giant Arabian Centres Company on its $748 million IPO, with an implied market capitalization of $3.3 billion, making it the Kingdom of Saudi Arabia's largest IPO in four years.
The deal, which was announced in April, closed today. Arabian Centres Company is the largest shopping mall owner in Saudi Arabia with a portfolio which includes 19 shopping malls, which attract approximately 109 million visits per year.
This is a significant transaction as it is the first IPO in Saudi Arabia with a full international offering, including an offering into the United States pursuant to Rule 144A. Furthermore, it is believed to be the first Saudi IPO with pre-deal investor education, marketed in a manner consistent with international practice. It is also the first IPO in Saudi to take advantage of the newly introduced price stabilization regime, also in keeping with international practice.
The team was led by Robert Eastwood and Karim Nassar of the Equity Capital Markets group of Legal Advisors in Riyadh and EMEA Head of Capital Markets Adam Farlow and Senior Associate George Marshall, both in Baker McKenzie, London.
Commenting on the transaction, Robert Eastwood said: "The transaction is emblematic of the growth of Saudi's capital markets and proof that the positive regulatory changes in recent years are attracting foreign investors to the market".
Adam Farlow added: "This is a first of a kind transaction in Saudi Arabia, and with the country looking to diversify its economy, we expect this to be the blueprint for how Saudi-listed international transactions are done in the Kingdom going forward."
This is the latest example of a high profile transaction that Legal Advisors and Baker McKenzie have advised on in Saudi Arabia. Since 2018, the Firm has been advising Alawwal bank on its US$4.9 billion merger with The Saudi British Bank.