The dual IPO of Americana is one for the ages. The Saudi/UAE operator of Pizza Hut and KFC chains in Abu Dhabi and Riyadh have gone public, a groundbreaking first, which garnered $1.8 billion USD for Saudi Arabia’s national wealth fund and Dubai tycoon Mohamed Alabbar.

According to a press release on Thursday, the Public Investment Fund and Alabbar sold 2.5 billion shares of Americana Restaurants International Plc for 2.68 riyals each, or 2.62 dirhams, the highest price in a marketing range. The business is valued at 22.6 billion riyals ($6 billion USD) in the final pricing.

Following Nahdi Medical Co.’s $1.4 billion bid in going public, Americana is the most substantial IPO this year and will be the first business whose shares are sold in both Riyadh and Abu Dhabi.
While the Tadawul stock exchange had long encouraged companies to dual list, Americana was the first to do so. A successful transaction should serve as a model for other businesses.

Middle Eastern initial public offerings (IPOs) have had an incredible year, raising $18.5 billion so far and on track to have their second-best financial year ever. The only time it was surpassed was in 2019, when Aramco listed for a whopping $29.4 billion, according to data gathered by Bloomberg.

The listing boom in the region stands in stark contrast to most other markets, where IPOs have fallen drastically due to worries about high inflation, rising interest rates, as well as the danger of recession in the US and Europe.

The IPO’s joint worldwide coordinators include Goldman Sachs, SNB Capital, Morgan Stanley, and First Abu Dhabi Bank PJSC, while the joint bookrunners are HSBC Holdings Plc and EFG Hermes. The financial advisor involved is Rothschild & Co.