May 23, 2016
The Law Office of Salman M. Al-Sudairi in association with Latham & Watkins LLP advised Al-Yamamah Steel Industries Company on the US$ 148 million (SAR 556 million) initial public offering (IPO) of 30 percent of its shares at an offer price of SAR36 per share, and the listing of its shares on the Saudi Stock Exchange (Tadawul). The book building process resulted in a subscription by institutional investors of 681% of the total offered shares, while the retail subscription by individual investors was 350.9% oversubscribed.
Al-Yamamah Steel Industries Company is one of the leading steel manufacturers in Saudi Arabia, producing metal products to serve the construction, electrical and telecommunication sectors. Al Yamamah also supplies steel reinforcing bars through its subsidiary (Al Yamamah Rebar company). This transaction marks the third Saudi IPO on which Latham has advised in 2016.
The Latham & Watkins team was led by finance partner Salman Al-Sudairi with associates Ibrahim Soumrany and Najla Al-Gadi.
Commenting on the transaction, Al-Sudairi said: “We are thrilled to have advised Al-Yamamah and its shareholders on this landmark transaction which represents a major milestone for the company’s strategic growth strategy.”