Riyadh - Mubasher: EFG Hermes has concluded advisory on the SAR 1.40 billion ($378 million) initial public offering (IPO) of Saudi power cables manufacturer Riyadh Cables Group Company (RCGC) on the Saudi Exchange (Tadawul).
The landmark listing bookends a series of successful IPOs EFG Hermes has advised on in the kingdom. EFG Hermes acted as joint bookrunner on the transaction, according to a press release.
The listing saw RCGC offer 33 million ordinary shares, accounting for 22% of its share capital, at a price of SAR 43 per share, implying a total market capitalisation of SAR 6.45 billion. The transaction garnered significant traction from regional and global investors, having been 72x oversubscribed on the institutional tranche.
Trading on the company’s shares began on 19 December 2022, with RCGC listed under the ticker 4142.
Saud Altassan, CEO of EFG Hermes KSA, commented: “As the Saudi equity market continues to ramp up, we’ve made it a priority to focus on bringing to market unique transactions that provide unmatched returns, a testament to our standing as a gateway through which regional and global investors can access quality issuances.”
Founded in 1984, RCGC is the leading power cable manufacturer in Saudi Arabia and MENA, and one of the largest in the world, with a total production capacity of about 264,000 tonnes. Alongside its manufacturing capacities, the company exports its products to more than 37 global markets spanning five continents.
Mohamed Abou Samra, Managing Director at the Investment Banking division, EFG Hermes, added: “The deal ideally positions the company to carry out its expansion and scaling plans, which are becoming important now more than ever as the company gears up to support Saudi Arabia’s 2030 Vision directives in energy transition and developmental projects.”
With this transaction, EFG Hermes has advised on 10 IPOs in nine different industries across six exchanges worth $12.80 billion, an unprecedented feat for any investment bank in the region.
