(MENAFN) In a disclosure to the Saudi Tadawul Stock Exchange on Monday, the Saudi Miyahuna Company, specializing in water and wastewater infrastructure, unveiled its intention to raise up to USD148 million through an initial public offering (IPO). Acting as the subscription manager, Saudi Fransi Capital disclosed that Miyahuna, operating under a public-private partnership model, aims to divest a 30 percent stake, equivalent to 48,277,663 shares, with a price range set between 10.5 riyals and 11.5 riyals (USD2.80 to USD3.07) per share.
Based on Reuters calculations, this price range indicates a prospective market capitalization ranging from USD450.6 million to USD493.3 million for the offered stake. The final offering price for the IPO will be determined following the conclusion of the book-building period on May 2.
Miyahuna Company, fully owned by Roya Investment Company, boasts comprehensive operations spanning the entire water sector cycle, from extraction to supply, collection, and reuse. With its headquarters in Riyadh, the company has demonstrated robust financial performance, achieving a compound annual growth rate of revenues at 12.3 percent between 2021 and 2023. Moreover, during the same period, the basic profit margin witnessed a notable increase from 36.9 percent to 43.8 percent, underscoring Miyahuna's profitability and growth prospects.
The forthcoming IPO represents a significant milestone for Miyahuna Company as it seeks to capitalize on investor interest and bolster its financial position. The infusion of funds from the IPO is expected to facilitate the company's expansion initiatives and enhance its capabilities to address the evolving needs of the water infrastructure sector in Saudi Arabia. As Miyahuna prepares to embark on its public offering journey, investors will closely monitor developments, eager to participate in the growth trajectory of one of the kingdom's leading players in water and wastewater infrastructure.
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