In a strong demonstration of rising demand for Saudi equities, investors poured in $34.8 billion in orders for United International Holding Co.’s IPO on the Riyadh exchange, oversubscribing the offering by 132 times. The parent company, United Electronics Co. (Extra), announced on November 12 that it would raise $263 million by selling a 30% stake in United International.
The final share price was set at 132 riyals ($35.14) per share, reaching the top of the expected range and resulting in a valuation of $878 million. When the offering opened in October, investor interest was so high that it sold out within minutes.
Saudi IPOs have consistently seen intense investor interest. Earlier in the year, a hospital group raised $763 million with its IPO, oversubscribed 119 times, and a fintech firm’s listing was oversubscribed by 129 times.
United International joins other notable private sector listings in the Gulf Cooperation Council (GCC) region, which has traditionally been dominated by state-owned entities. Lulu Retail Holdings PLC recently raised $1.72 billion in Abu Dhabi, and Dubai’s Talabat plans to go public on November 19, potentially reaching a valuation surpassing its parent company, Delivery Hero SE.
Institutional investors have completed their subscription for United International’s IPO, while the retail tranche will open on November 19 for two days. HSBC Saudi Arabia serves as the financial advisor, lead manager, and bookrunner for the IPO, with EFG Hermes KSA as the joint bookrunner.
The IPO activity in the region remains strong, with more companies considering listings. Alpha Data, an IT services firm, plans to list in the UAE, while the buy-now-pay-later firm Tabby is reportedly exploring a share sale in Saudi Arabia.
