Qualified investors start subscription to 2.8 mln shares of Group Five Pipe

Logo of Group Five Pipe Saudi Ltd.

Qualified investors start, today, Nov. 14, subscription to 2.8 million shares of Group Five Pipe Saudi Ltd., at SAR 35 each.

The subscription period will last five days until Thursday, Nov. 18.

In September, the Capital Market Authority (CMA) approved the company’s request to offer 10% of its capital on the Nomu-Parallel Market. 

Subscription method:

Qualified investors can subscribe electronically through their investment accounts with the lead manager Derayah Financial Co.

Types of qualified investors:

1) Capital market institutions authorized to act on their own account.

2) Clients of capital market institutions who are authorized to carry out management operations, provided that such authorized persons are appointed under terms that enable them to take decisions related to accepting the participation in the share offering and investment in the parallel market, on behalf of the client, without the need to obtain prior consent from the client.

3) The Saudi government, any governmental body, any international entity approved by the CMA or the Saudi market, or any other financial market recognized by the CMA or the Securities Depository Center (Edaa).

4) Companies that are owned by the government, directly or through private portfolio manager.

5) Companies and funds established in the GCC countries.

6) Investment funds.

7) Non-resident foreigners who are allowed to invest in the parallel market and who fulfill the requirements as stipulated in the guide of non-resident foreigners’ investments in the parallel market.

8) Qualified foreign financial institutions.

9) Any legal person who has the right to open investment accounts inside the Kingdom, and accounts with Edaa.

10) Natural persons who can open investment accounts inside the Kingdom and accounts with Edaa, and who fulfill the following criteria:

a) Have executed deals in securities markets, with a total value of not less than SAR 40 million, and not less than 10 deals in each quarter during the past 12 months.

b) Have net assets value not less than SAR 5 million.

c) Are working or have worked for at least three years in the financial sector.

d) Hold a general certificate in securities dealing, approved by the CMA.

e) Hold a professional certificate in the field of securities business, approved by an internationally recognized body.

11) Any other persons to be defined by the CMA.

Company Profile:

The company was established in Dammam as a hybrid limited liability company, with capital of SAR 30 million. The company increased its capital to SAR 90 million, and then to SAR 280 million in 2020.

In 2021, the company turned into a closed joint stock company, with capital of SAR 280 million, divided into 28 million shares.

Group Five Pipe produces, sells, and markets spiral-welded steel pipes. It has one of the most advanced factories in the production of steel pipes in the Kingdom and GCC region, with an annual production capacity of 550,000 metric tons annually.

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