Business & Money | Sunday 19 June, 2016 3:41 pm |

The CEO of  Saudi Fransi Capital, the financial advisor, lead manager, bookrunner and sole underwriter for L’azurde Company for Jewelry (“L’azurde”) stated that it successfully completed L’azurde’s retail tranche offering on 08/09/1437H corresponding to 13/06/2016G. The retail tranche was oversubscribed by 2.9 times at a price of SAR 37 per share. This was achieved by way of 385.4 thousand subscribers, who invested SAR 419.7 million (i.e. 11.3 million shares). Retail investors participated in the offering through electronic channels and branches of the receiving banks, which constituted 93.8% and 6.3% of the total subscribers, respectively.  

 

 

Given the retail participation levels, and the prospectus allocation guidelines, 3.87 million shares have been offered to the retail tranche and represents 30% of the total offer shares. The remaining 70% of the offer shares have been subscribed and allocated to institutional investors, through mutual funds at 8.1 million shares (i.e. 63%) and other institutional investors 0.9 million shares (i.e. 7%). 

In regards to the retail allocation, each individual subscriber will receive a guaranteed minimum of 10 shares each. Additional shares above the minimum guaranteed amount will be distributed on a pro-rata basis, as per the following table: 

 

 

Mr. Al-Fatani expressed his thanks and gratitude to the Capital Market Authority and the receiving banks on their efforts put forth in attaining the success of the offering. Mr. Al-Fatani further extended his thanks to L’azurde for entrusting Saudi Fransi Capital to manage the IPO process, noting it was completed successfully due to the high level of subscribers’ awareness and the collaboration and cooperation of all parties involved.

Mr. Al-Fatani noted that the receiving banks will commit to finalize the refund of excess monies, at the latest, by 15/09/1437H corresponding to 20/06/2016G. This will be ahead of L’azurde listing, once it fulfils all the related requirements and procedures, which the date will be announced on Tadawul’s website.

Mohammed Al Shroogi, Chairman of L’azurde and Co-CEO of Investcorp, said: “We are thrilled that L’azurde’s IPO has been so successfully received by both institutional and retail investors. During the past month, it became evident that amongst the investor community there is widespread understanding of the strength of L’azurde’s business, and the future potential for further growth and development. As we approach the final stage in L’azurde’s transition to a listed business on the Tadawul, we thank everyone who has contributed to reaching this historic milestone for the Company.” 

Sélim Chidiac, CEO of L’azurde, said:  “Following the high-demand for L’azurde shares from institutional investors, it is clear that Saudi Arabia’s retail investors are similarly motivated to obtain a stake in the Company’s future. L’azurde is a prime example of a modern, dynamic and international business, providing a quality product through its stateoftheart manufacturing capabilities, retail distribution and by highly-skilled employees. This strong platform, and potential for future growth, has been welcomed by investors across Saudi Arabia. Once again, may we express our gratitude to the CMA and Tadawul for their constant support over the previous months.”

L’azurde is owned by a consortium of private equity firms comprising Investcorp, Eastgate Capital and The National Investor alongside the Al Othaim family. The current shareholders will hold 70% of the shares of L’azurde at listing.