Law firm of Salman M. Al-Sudairi and Latham advises East Pipes on SAR 504m IPO

Salman M. Al-Sudairi’s law firm and Latham & Watkins advised East Pipes Integrated Company for Industry (East Pipes), Saudi Arabia’s leading manufacturer of helically submerged arc welded (HSAW) pipes, on its 504 million of SAR (approximately $134.4 million) initial public offering (IPO) and listing of common shares on the main market of the Saudi Stock Exchange, Tadawul.

The IPO involved the offering and sale of 6.3 million shares, representing 30% of East Pipes’ issued share capital of 21 million shares, through 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 SAR 80 per share.

East Pipes is a leading Saudi Arabian manufacturer of HSAW pipes founded in 2010 in Dammam. The company has a production capacity of up to 500,000 tons of pipes per year which are used to transport water, oil and gas, in a wide range of spiral pipe diameters, supported by the unit of double interlocking, and a factory for the coating of all pipes of different 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 team at Salman M. Al-Sudairi’s law firm was led by Latham’s director and partner, Salman Al-Sudairi, with partners Najla Al-Gadi, Homam Khoshaim and Aya AlHumaid.

The Latham team was led by Dubai partner Brian Meenagh along with partner Avinash Balendran.

Al-Sudairi commented: “We are delighted to have advised East Pipes and its shareholders on this historic offer. Strong demand from regional investors is a testament to the strength of East Pipes’ business and the deal further reinforces our reputation as the go-to law firm for capital markets transactions.

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