Saudi Arabian utility Marafiq’s IPO draws $53 billion in orders

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Saudi Arabian utility Marafiq priced its initial public offering at the top of a marketed range to raise 3.36 billion riyals ($897 million) in the latest Saudi listing to attract strong demand.

Power and Water Utility Co. for Jubail and Yanbu, as the company is formally known, priced the IPO at 46 riyals per share, according to a statement on Tuesday.

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The sellers -- Saudi Arabia’s wealth fund Public Investment Fund, Royal Commission for Jubail and Yanbu, Aramco and Sabic -- had offered 73.1 million shares at 41 riyals to 46 riyals apiece, valuing the company at 11.5 billion riyals.

The IPO drew $52.5 billion in demand, in keeping with the recent trend of Gulf listings proving significantly oversubscribed. The region has been a bright spot for share sales this year, thanks to elevated oil prices and juicy dividends.

There have already been 22 IPOs in Saudi Arabia this year, more than any other full-year total, data compiled by Bloomberg show. Marafiq’s IPO is the largest in the Kingdom since pharmacy chain Nahdi Medical Co. raised $1.4 billion in March.

Saudi stocks are rebounding from a selloff that sent the country’s benchmark gauge to a bear market last month. They are now up 2.5 percent this year, compared with double-digit declines in European and US indexes.

HSBC Holdings Plc and Riyad Capital are managing Marafiq’s IPO. Retail investors will be able to subscribe for the offering from October 26 to 30.

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