Welspun Corp's JV EPIC lists at premium on Saudi Exchange

15 Feb 2022 , 12:07 PM

Welspun Corp Ltd. (WCL), flagship Company of the Welspun Group has announced the successful listing of its Joint Venture company in Kingdom of Saudi Arabia (“KSA”), East Pipes Integrated Company for Industry (EPIC) on the Saudi Exchanges Main Market (“Tadawul”). The listing price of SAR 88 per share was at a 10% premium to its final offer price of SAR 80 per share.

The IPO of EPIC was for 6.3 million ordinary shares, representing 30% of the issued share capital of 21 million shares by way of an Offer for Sale (OFS) of existing shares of the current shareholders on a pro-rata basis.

The market capitalization at the opening price stands at ~Rs3,700 crore. Post the P0, WCL owns 35.01% (from earlier 50.01%) through its step-down subsidiary in Mauritius and will continue to be the largest shareholder in EPIC.

Welspun Holdings Mauritius would receive gross proceeds of SAR 252 million (~Rs500 crore), subject applicable taxes and expenses.

Vipul Mathur, MD & CEO, Welspun Corp Ltd. said ‘The resounding success of the IPO, as reflected in the high oversubscription across both the institutional and individual segments as well as its pricing at the upper band of range, mirrors the trust and confidence of the investor community in EPIC’s value proposition.

The IPO is part of EPIC’s overall corporate development strategy to institutionalise the company, strengthen its brand and anchor its competitive position as a leader in the pipes industry market, as part of its next phase of growth”.

At around 12:06 PM, Welspun Corp was trading at Rs157.25 apiece up by Rs0.9 or 0.58% on the BSE.