$378MM raised by Riyadh Cables as Mideast IPO boom continues
Riyadh Cables Group Co. raised $378 million from an initial public offering, pricing the deal at the top of a range as the Middle East bucks a global downturn.
The Saudi Arabian manufacturer of power and telecom cables sold shares at 43 riyals ($11.44) each, according to a statement. The pricing range was 39 riyals to 43 riyals.
Listings in the Persian Gulf — primarily Riyadh, Abu Dhabi and Dubai — have fetched $18 billion this year, representing almost half of the IPO money raised in Europe, the Middle East and Africa, data compiled by Bloomberg show.
While most major markets — including Europe — have seen activity slump sharply due to economic weakness and soaring inflation, it’s a different story in the Middle East. A surge in oil prices has bolstered petrostates such as Saudi Arabia and the United Arab Emirates.
$378MM raised by Riyadh Cables as Mideast IPO boom continues
Riyadh Cables’ deal attracted more than $27 billion in orders, according to the company, continuing a trend of high subscription rates in the Gulf.
The IPO follows that of Saudi oilfield-services firm Arabian Drilling Co., which jumped 23% in its trading debut Monday. It raised $710 million with its listing.
Also last week, Saudi Arabia’s sovereign wealth fund raised $610 million from the sale of a 10% stake in the kingdom’s stock exchange. Riyad Capital was the main bank managing Riyadh Cables’ transactions. EFG-Hermes and ANB Capital were joint bookrunners.
