Arabian Centres Company, a leading owner, developer and operator of lifestyle shopping centres in Saudi Arabia, said it plans to proceed with an initial public offering (IPO) on the Saudi Stock Exchange (Tadawul).

The offering is expected to comprise a combination of existing and newly issued shares and is expected to result in a free float of 20 per cent post-IPO (prior to any exercise of the over-allotment option). The Capital Market Authority (CMA) has approved the Company’s application for the initial public offering of 95,000,000 ordinary shares (representing 20 per cent of the Company’s share capital post-Offering) on April 15.

The net proceeds due to the Company will be used to reduce debt and (if there is any surplus) for general corporate purposes. Subsequently, the Company believes it will be in a prime position to achieve its growth plans as set out in the Prospectus to be published in due course in connection with the Offering, a statement said.

Fawaz Alhokair, chairman of Arabian Centres, said: “Today marks a major milestone for Arabian Centres, as we enter the next phase in our journey as a business. What began nearly two decades ago as a company with a bold retail vision has rapidly grown to become the undisputed market leader in lifestyle shopping centres in Saudi Arabia.

“By pursuing an initial public offering, we are laying the groundwork for the next chapter of our growth story and are offering investors – both domestic and international – the opportunity to invest in a dynamic company and industry well-positioned to benefit from the longer-term structural growth path within the retail sector in the Kingdom.”

Olivier Nougarou, CEO of Arabian Centres, said: “An initial public offering will enable Arabian Centres to deliver on our ambitious growth strategy. As we already have a portfolio of 19 assets – with another four malls and one extension due to open in the coming 12 months, and another four sites for future development along with one extension in the medium-term pipeline – we are in an excellent position to capitalize on future opportunities.

‘We have a clear plan for our business to unlock further value from our current portfolio, enhance our lifestyle and brand offering, and maintain our leadership through developing a focused and superior pipeline. We are excited for what the future holds for Arabian Centres and the Kingdom as a whole.” – TradeArabia News Service