Arabian Contracting Services Company’s US$400 Million Initial Public Offering

White & Case and The Law Office of Megren M. Al-Shaalan have advised GIB Capital as financial advisor and lead underwriter and Albilad Capital as co-underwriter on the IPO. Baker & McKenzie Limited advised Arabian Contracting Services Company on the deal.

Arabian Contracting Services Company (Al Arabia) executed its initial public offering (IPO) on the Main Market of the Saudi Stock Exchange (Tadawul).

Al Arabia offered 15 million ordinary shares to institutional and retail investors, amounting to 30 percent of its share capital. With the total IPO proceeds raising SAR 1.5 billion (US$ 400 million), Al Arabia’s implied market capitalisation was approximately SAR 5 billion (US$ 1.3 billion) at the commencement of trading.

The institutional offer comprised 90 percent of the offer shares and was oversubscribed by 126.6 percent. The remaining 10 percent offer shares were offered to retail investors. 

Al Arabia offers advertising, promotion, printing and maintenance services, which include roadside advertisement and indoor advertisement. The company owns and operates the largest portfolio of out-of-home advertising billboards, covering 30 cities across Saudi Arabia.

The White & Case team that advised on the transaction was led by partner Sami Al-Louzi (Picture) and associate Ibrahim Soumrany (both Dubai) and included associates Mohamed Hasan, Nawaaf Alawaad and Simon O’Connell-Schizas (all LOMAS, Riyadh).

The Baker & McKenzie team was led by Abdulrahman AlAjlan and Karim Nassar and included senior associates Hessa AlAiban and Samar Baharon and associate Ayatt Ashour.

Involved fees earner: Karim Nassar – Baker McKenzie; Hessa AlAiban – Legal Advisors, Abdulaziz I. Al-Ajlan & Partners; Abdulrahman Alajlan – Legal Advisors, Abdulaziz I. Al-Ajlan & Partners; Ayatt Ashour – Legal Advisors, Abdulaziz I. Al-Ajlan & Partners; Samar Baharon – Legal Advisors, Abdulaziz I. Al-Ajlan & Partners; Sami Al-Louzi – White & Case; Nawaaf Alawaad – White & Case; Mohamed Hasan – White & Case; Simon O’Connell-Schizas – White & Case; Ibrahim Soumrany – White & Case;

Law Firms: Baker McKenzie; Legal Advisors, Abdulaziz I. Al-Ajlan & Partners; White & Case;

Clients: Albilad Capital; Arabian Contracting Services Company; GIB Capital;