Saudi's Maaden plans $2.5bn July IPO

SHARE SALE: Maaden plans to raise $2.5 billion through an IPO in July. (Getty Images)

State-owned Saudi Arabian Mining Company (Maaden) plans to raise 9.25 billion riyals ($2.47 billion) in an initial public offering (IPO) in July, valuing the firm at $4.9 billion, the kingdom's bourse regulator said on Monday.

Maaden is a partner in an aluminium venture with Rio Tinto Alca. Canada's Alcan before it was taken over by Rio Tinto and Maaden agreed last April to develop what would be one of the world's largest aluminium-making projects at a cost of $7 billion. That includes a smelter, an alumina refinery and a power station.

Maaden will offer Saudi institutional and individual investors 462.5 million of stock, equivalent to 50% of its share capital, at 20 riyals each, the Capital Market Authority (CMA) said in a statement on the bourse website. The sale starts July 5 and ends July 14, it said.

The other 50% will be held by the Public Investment Fund (PIF), according to a cabinet statement in March.

Saudi retail investors will be guaranteed a minimum 25 shares each, the CMA said.

Maaden Chief Executive Abdullah Dabbagh told newswire Reuters in February that the company plans to offer 40% of its capital in an IPO and another 10% to two Saudi state pension funds.

The share sale, on which JPMorgan Chase & Company was advising, was initially planned for last year, and put at between $1.9 billion and $2.5 billion.

Maaden, which generates most of its revenue from gold production, is developing projects - including phosphate mining - worth about 44 billion riyals, as the world's largest oil exporter seeks to diversify its economy from energy.

The phosphate venture with state-controlled Saudi Basic Industries Corporation (Sabic) will cost about 17 billion riyals. (Reuters)

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