Almasar Alshamil Education received relatively muted retail take-up for its SR599m (US$159.7m) IPO with the 30% tranche only 1.2 times subscribed.

A total SR218.2m of demand was received from 95,679 individual investors, in contrast to institutional demand that saw the deal covered 103 times. Retail coverage in excess of the entire deal is common in the region, most recently seen on car rental business Cherry Trading, which secured SR326m of retail demand for its SR252m IPO. 

Institutional demand for Almasar Alshamil set pricing at the top of a SR18.50–SR19.50 range.

The retail demand is spread thinner as the 30% tranche more than the 20% typically seen on Saudi IPOs, in a move said to have been driven by the regulator.

Refunds of excess subscriptions are due by December 2.

SNB Capital is financial adviser and joint bookrunner with EFG Hermes.

Source: IFR