Saudi Ground Services sets IPO price at SAR 50/share

Saudi Ground Services Co. (SGS) has set the price for its initial public offering (IPO) at SAR 50 per share, HSBC Saudi Arabia, the lead manager and financial adviser, saidin a statement obtained by Argaam.

The book-building process received SAR 25.3 billion purchase orders.

It was nine times oversubscribed, as follows: 1.7 times by mutual funds, two times by persons authorized by the Capital Market Authority (CMA), 4.6 times by Tadawul-listed companies and 0.7 time by government authorities, public institutions, and state-owned companies.

HSBC added that 90 percent of institutional shares will be allotted for mutual funds. Final allotment will follow the retail subscription.

One million shares, or 40 percent of the offered shares were allocated to retail investors.

Argaam earlier reported that Saudi Ground Servicesplans to hold its IPO from June 3 to June 9. The company will sell 30 percent of its capital, or 56.4 million shares.