Cherry Trading retail IPO 647% oversubscribed; 10 shares allocated

Cherry Trading Co. concluded its retail subscription for its initial public offering (IPO) on the Main Market (TASI), lead managers, financial advisors, bookrunners, and underwriters BSF Capital and EFG Hermes KSA said in a statement to Tadawul today, Nov. 19.

 

A minimum of 10 shares was allocated to each investor in the retail tranche. Allocating a total of SAR 326 million, as many as 81,006 subscribers took part in the offering, which was 647% oversubscribed.

Rump shares will be allocated on a pro rata basis, based on the size of each investor’s request, at an average allocation factor of 9.1%, the statement added.

 

Based on the outcome of the retail subscription, shares allocated to institutional investors will be scaled back to 7.2 million, representing 80% of the total offer shares.

 

From Nov. 12-13, individuals subscribed to 1.8 million shares of Cherry Trading at SAR 28 each — set based on the book-building process, according to Argaam's data.

 

The company floated nine million shares, making up 30% of its SAR 300 million capital, divided into 30 million shares at a par value of SAR 10 each.

 

The institutional tranche of the share sale was nearly 85.6x covered.