Legal advisors, Abdulaziz Alajlan & Partners alongside Baker McKenzie, London, have advised the joint underwriters on The Power and Water Utility Company for Jubail and Yanbu's (Marafiq) US$ 897 million (SAR 3.36 billion) initial public offering (IPO) and listing on the Saudi Stock Exchange (Tadawul), with a market capitalization on listing of US$ 3.1 billion (SAR 11.5 billion). The syndicate included HSBC Saudi Arabia and Riyad Capital as joint financial advisors, bookrunners and underwriters, with HSBC Saudi Arabia as the lead manager. The offering comprised the sale of 29.24% of Marafiq’s shares (73.1 million shares), with trading in its shares commencing on 24 November 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.
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 US$ 12.24 (SAR 46) which was at the top end of the price range initially announced. Marafiq’s IPO drew US$ 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.
Abdulrahman Alajlan commented, “We are very pleased to once again support on a landmark IPO transaction following the recent successful listing of Arabian Drilling Company, earlier in November 2022. Thanks to the continued demand for IPOs and investors’ enthusiasm, the Saudi Arabian IPO activity remains on pace as we head into the new year and we look forward to bringing more capital markets deals to a fruitful close in 2023.”
The cross-border team was led by Nadine Nassar (Legal Advisors, Riyadh) 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.
Nadine Nassar and Charles Farnsworth added: “We are delighted to have had the opportunity to act for the syndicate of underwriters on this significant offering, which aims at supporting the sustainable development goals of Marafiq and further drive its growth. This transaction is a testament to the strength of our excellent cross-border and cross-practice teams and our ability to collaborate seamlessly as we advise our clients towards a successful listing.”
This deal adds to the long list of transactions on which Legal Advisors and Baker McKenzie have advised on in Saudi Arabia, including the latest example of Arabian Drilling Company’s IPO, advising the syndicate of three underwriters on its US$ 710 million IPO. In addition, in 2021, the Firm advised the syndicate of 11 underwriting banks on ACWA Power’s US$ 1.2 billion IPO and US$ 11 billion listing as well as the three underwriters on Saudi Tadawul Group Holding’s US$ 1.0 billion initial public offering and $3.4 billion listing on Tadawul.