Americana raises $1.8b from IPO

DUBAI. Saudi Arabia’s sovereign wealth fund and Dubai businessman Mohammad Alabbar raised $1.8 billion from the dual-listing of the Middle Eastern operator of KFC and Pizza Hut outlets in Abu Dhabi and Riyadh, the first of its kind.

The Public Investment Fund and Alabbar sold 2.5 billion shares in Americana Restaurants International Plc at 2.68 riyals each, or 2.62 dirhams, the top of a marketed range, according to a statement yesterday. The shares had been offered at 2.55 riyals to 2.68 riyals each, or 2.50 dirhams to 2.62 dirhams apiece.

The final pricing values the business at 22.6 billion riyals ($6 billion). The listing drew orders of $105 billion, continuing a trend whereby share sales in the Middle East have been massively oversubscribed.

Americana is the biggest Saudi IPO this year after Nahdi Medical Co.’s $1.4 billion listing.