Maaden $2.47bn IPO 68% covered in first day

BUMPER SUBSCRIPTION: Maaden said its IPO was 68 percent covered by the end of the public offering's opening day. (Getty Images)

State-owned Saudi Arabian Mining Co's (Maaden) 9.25 billion riyals ($2.47 billion) initial public offering raised 6.32 billion riyals in its first day, according to figures it released on Sunday.

The Middle East's biggest mining IPO, which values Maaden at $4.9 billion, raised about 823 million riyals from some 532,517 Saudi retail investors at the end of its opening day on Saturday, Maaden said in a statement.

"[This] equates to 14 percent coverage of the offering," the firm said.

Prior to the launch of the IPO, Maaden has secured 5.5 billion riyals of funds for the IPO from institutional investors, it added.

"Up to 27 percent of the offered shares will be available to such institutional investors; however this portion may be decreased to 5 percent in favour of the retail tranche," it said.

Maaden is offering 462.5 million of stock - equivalent to 50 percent of its share capital - at 20 riyals each with subscriptions closing on July 14, according to the bourse regulator, the Capital Market Authority (CMA).

The IPO is to cover some of the costs of projects led by the company, mainly a 740,000-tonne aluminium smelter with Rio Tinto and a three million-tonne phosphate and by-products plant with Saudi Basic Industries Corp (SABIC).

The other 50 percent of Maaden's capital is held by the Public Investment Fund (PIF), a state fund under the helm of the finance ministry.

Maaden estimates its total investments at 60 billion riyals, including phosphate, bauxite, gold and industrial minerals. The investments are part of government plans to diversify an economy that heavily depends on oil. (Reuters)

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