The Power and Water Utility Company for Jubail and Yanbu (Marafiq) intends to proceed with an Initial Public Offering (IPO) and list its shares on Saudi Exchange (Tadawul).
The utility provider noted that the Capital Market Authority (CMA), on 26 September 2022 approved Marafiq’s application for the offering of 73,094,500 ordinary shares “offer shares”, representing 29.24% of the issued share capital. The IPO, after taking into account minority shareholders with a total of 0.76% of Marafiq’s share capital, will correspond to a 30% free float at listing.
The final price at which all subscribers in the IPO will purchase shares will be determined at the end of a book building process, it added.
MARAFIQ’s IPO timeline
Marafiq is an integrated utilities services provider with presence across the power and water value-chain. Together with its various subsidiaries, Marafiq is responsible for providing utilities services in strategic Royal Commission industrial cities in the Kingdom of Saudi Arabia and is expanding its presence across the kingdom.
Marafiq’s customer base is predominantly large-scale, highly creditworthy industrial businesses – these accounted for 86% of its total revenues in FY2021.
Commenting on the firm’s decision to list shares, HE Khalid M. Al-Salem, Chairman of the Board of Directors of Marafiq, said: “Marafiq is a critical component of Saudi Arabia’s industrial ambitions, which are central to the kingdom’s vision. With our strong foothold in two of Saudi Arabia’s most strategically important industrial cities and a growing presence throughout the kingdom, the initial public offering of Marafiq is an opportunity for investors to not only benefit from our steady and reliable cash flow but also to be part of an exciting growth story.”
Meanwhile, Mohammed Al-Zuabi, President & CEO of Marafiq, said: “Today’s announcement marks an important milestone in Marafiq’s journey, a journey which began almost 20 years ago when we started providing power and water services in Jubail and Yanbu. We have since become an integrated utilities provider offering a full suite of services across the utilities value chain with a growing footprint across the Kingdom of Saudi Arabia.
“With our track record of operational excellence and the highest standards of service quality, we have built long-lasting relationships with some of the world’s largest industrial companies, and we are looking forward to helping them achieve their ambitions in the growing Kingdom of Saudi Arabia.”
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