Saudi regulator approves Americana's dual listing on Saudi and UAE bourses

Capital Market Authority approves company's application to list more than 2.52 billion shares

Kuwait based company Americana exhibiting at Gulf Food 2011 in Dubai, United Arab Emirates on Tuesday, Mar. 01, 2011. Photo: Charles Crowell for The National
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Saudi Arabia’s market regulator Capital Market Authority has approved Americana Restaurants' application for the concurrent and dual listing of more than 2.52 billion shares, representing 30 per cent of the company's share capital, on Saudi and UAE stock exchanges.

The dual offering is the “first of its kind” in the Saudi Capital Market, CMA said in a statement on Monday.

The decision to subscribe to foreign companies may involve high risk that requires examining a number of regulations and instructions related to Saudi Capital Market and Abu Dhabi Securities Exchange.

“Therefore, investors should carefully read the prospectus and prospectus supplement, which include detailed information on the company, the offering and risk factors,” CMA said.

“Thus, providing potential investors the ability to evaluate the viability of investing in the offering, taking into consideration the associated risks.”

Americana Restaurants International Company is owned by Saudi Arabia’s Public Investment Fund and an investment vehicle led by Dubai-based businessman Mohamed Alabbar, according to Bloomberg.

The company was previously trading its shares on the Kuwait Stock Exchange, Zawya reported, however, it delisted from the Kuwaiti bourse in 2017.

Founded in Kuwait in 1964, Americana introduced the concept of fast-food restaurants in the region in 1970.

As of January, the group owns exclusive franchise rights for the management and operation of more than 1,950 restaurants in 13 markets across the Middle East and North Africa and Commonwealth of Independent States. It represents leading brands including KFC, Pizza Hut, Hardee’s, Baskin Robins, Krispy Kreme, Wimpy and TGI Fridays, among others.

The number of listings in the Mena market increased sharply during the first six months of this year, with 24 IPOs raising $13.5 billion, according to an EY report on the region's IPOs. In the second quarter of 2022, nine IPOs raised about $9bn.

The UAE was the biggest IPO market in terms of the aggregate value of deals while Saudi Arabia led in terms of volume, with five IPO deals in the first six months of the year, according to EY's data.

Updated: October 31, 2022, 5:25 PM