Elm to allocate 30% of offer shares, or 7.2 mln shares to retail subscribers

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Elm Co. will float 30% of its capital, or 24 million shares in an initial public offering (IPO) on Saudi Exchange (Tadawul), Riyad Capital, the IPO financial advisor, bookrunner, lead manager, and underwriter, said in a bourse filing.

All of the offer shares will be allocated to the participating entities. Where there is sufficient demand from individual subscribers, the lead manager may reduce the number of offer shares allocated to the participating entities to 70%, and allocate 30% to individual subscribers (equal to 7.2 million shares).

The final offer price will be determined after the completion of the book-building process.

Elm generated revenue of SAR 1.791 billion in the six-month period ended June 30, 2021. It also made a net profit of SAR 279 million in the same period.

Elm was established in 1988 as a limited liability company. In 2007, the company turned into a closed joint-stock one-person company. Elm is a leader in the integrated digital solutions market especially within the transformation into digital governments.

It has a diversified portfolio that covers 13 industries.

Elm provides various technical solutions, e-products, consulting services, digital outsourcing, and training solutions to government and private businesses. It introduces several innovative solutions and platforms including Yakeen, Mojaz, Tamm, Muqeem, and others.

Elm owns a large share in the Kingdom’s information technology industry, which was valued at SAR 101 billion in 2020. More than 95% of population are considered active internet users, while 72% are deemed active users of social media.

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