The Law Office Of Salman M. Al-Sudairi and Latham Advise East Pipes on SAR504 Million IPO
The Law Office of Salman M. Al-Sudairi and Latham & Watkins have advised East Pipes Integrated Company for Industry (East Pipes), Saudi Arabia’s leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes, on its SAR504 million (approximately US$134.4 million) initial public offering (IPO) and listing of ordinary shares on the Saudi Exchange’s Main Market, Tadawul.
The IPO involved the offer and sale of 6.3 million shares, representing 30% of East Pipes’ issued share capital of 21 million shares, by way of a sale of existing shares by the current shareholders on a pro-rata basis. Of the total shares sold in the IPO, 90% were allocated to institutional investors and the remaining 10% to retail investors. The final offer price was set at SAR80 per share.
East Pipes is a Saudi state-of-the-art manufacturer of HSAW pipes founded in 2010 in Dammam. The company has a production capacity up to 500,000 tons of pipes annually that are used to transport water, oil, and gas, according to wide range of diameters of spiral pipes, supported by the double jointing unit, and a factory for coating all pipes of various sizes and lengths, with an annual production capacity of 4.5 million square meters. The company is currently owned by Welspun Corp (WLC) (50.01%), Vision Invest (16.50%), Aziz Company (28.50%), and Mohawarean Industrial Services Company (4.99%).
The Law Office of Salman M. Al-Sudairi team was led by principal and Latham partner Salman Al-Sudairi with associates Najla Al-Gadi, Homam Khoshaim, and Aya AlHumaid.
The Latham team was led by Dubai corporate partner Brian Meenagh with associate Avinash Balendran.
Al-Sudairi commented: “We are pleased to have advised East Pipes and its shareholders on this landmark offering. The strong demand seen from regional investors is testament to the strength of East Pipes’ business and the deal further strengthens our reputation as a go-to law firm for capital markets transactions.”