In Tadawul IPO, 36 mln Shares Offered for 3-Day

The Saudi Tadawul Group announced the public offering of 36 million shares, or 30% of its stock, for a 3-day period to individual subscribers beginning Tuesday, November 30 and ending Thursday, December 2, with the minimum allocation of 10 shares and the maximum allocation of 250 thousand shares, with the remainder being distributed, if any, on a proportional basis.

The subscription is divided into two tranches, according to the prospectus.

Tranche (A): Participating Classes: This bracket includes the classes that are eligible to participate in the book building process and share allocation in the CMA’s initial subscriptions if they follow the directions for book construction and share allocation.

 Initially, 36 million shares shall be assigned to the participating categories, representing 100% of the total offering shares.

A minimum of 32.4 million shares, or 90% of the offering shares, shall be allotted to the participating classes in the offering.

Tranche (B): Individual Subscribers: This category includes Saudi nationals, such as a while a Saudi woman who is divorced or widowed with minor children from a non-Saudi husband, where she shall has the right to subscribe in her name or in the names of her minor children for her own benefit, provided she submits evidence of her divorce or widowhood, as well as proof of her motherhood to minor children, and any non-Saudi person residing in Saudi Arabia.

They shall have the right to open an investment account (hence referred to collectively as “individual subscribers” and for each of them individually as “subscriber” and collectively as “subscribers” with the participating categories and subscribing institutions.”)

 A candidate shall be subjected to such a type of system.