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Americana Restaurants International PLC announced the allotment of shares to investors and the updated schedule for its initial public offering, the first simultaneous dual listing on the Abu Dhabi Securities Exchange and the Saudi Stock Exchange (Tadawul).
As announced on November 24, 2022, the final price of the shares to be offered for subscription was set at AED 2.62 per share in the UAE and 2.68 riyals per share in the Kingdom of Saudi Arabia.
The simultaneous book-building process resulted in approximately $105 billion worth of subscription requests (AED 386 billion, SR 394 billion), in total from eligible institutional investors in a number of countries, including the UAE and Saudi Arabia, and individuals and other investors in the UAE and Saudi Arabia.
The subscription requests for the individual segment in the UAE and Saudi Arabia exceeded 48.2 times and approximately 2.8 times, respectively, while the subscription requests for the eligible institutional segment exceeded 65.5 times. This means that the subscription requests have been exceeded by 58 times. A total of 283,245 individual investors in the Kingdom of Saudi Arabia participated in the initial public offering.
stock allocation
After completing the process of building the simultaneous order book, 80% of the offering shares were allocated to the eligible institutional tranche of 2,021,671,944 ordinary shares, 10% to the individuals tranche in the UAE or 252,708,993 ordinary shares and 10% to the individuals tranche in the Kingdom of Saudi Arabia, or 252,708,993 ordinary shares.
Americana Restaurants Company has also allocated a minimum of 1,000 shares to each subscriber of the retail segment in the UAE and no less than 892 shares of the offering shares to each subscriber in the individual segment in the Kingdom of Saudi Arabia. In addition, the remaining offering shares were allocated on a pro-rata basis to the individual segment in the UAE, with an allocation rate of 0.01% for the individual segment in the Kingdom of Saudi Arabia. The shares have been allocated to the eligible institutional segment in consultation with international financial advisors and coordinators.
Updated schedule
As per the updated schedule, the excess subscription amounts will be returned to retail investors in the UAE on November 30, 2022 and to individual investors in Saudi Arabia before December 8, 2022. The IPO will be completed through the dual listing process on the Abu Dhabi Securities Exchange. and the Saudi Stock Exchange (Tadawul), and it is expected that the offering shares will be listed and the trading process will start on December 12, 2022, subject to obtaining all required regulatory approvals.
Market depth
Mohammed Ali Rashid Alabbar, Chairman of Americana Restaurants, said: “The pricing of the offering at the upper end of the price range is a clear indication of the opportunity we present to investors, with the number of total subscription requests exceeding 58 times. We look forward to the next step in the journey of growth and fulfillment of our promise. By creating future additional value for our shareholders. We are also proud that we have taken the final step to complete the first-ever simultaneous dual listing process in the Abu Dhabi Stock Exchange and the Saudi Stock Exchange, which will contribute to enhancing the depth and development of the financial markets in both the UAE and Saudi Arabia. We are excited to welcome our new shareholders in December.”
It is worth noting that Adeptio AD Investments Ltd. had announced that 2,527,089,930 shares of its common stock had been offered for sale with a nominal value of AED 0.073 (equivalent to SAR 0.075), which represents 30% of the total issued shares in the capital of Americana Restaurants Company. The net proceeds from the offering will be distributed to the selling shareholder. The shares owned by the public will represent 33.97% of the company’s shares on the date of listing.
