Elm issues prospectus for 30% IPO on Tadawul

Elm Co. announced the prospectus for the initial public offering (IPO) of 24 million shares, or 30% of its SAR 800 million capital on the Saudi Exchange (Tadawul).

Last month, the Capital Market Authority (CMA) approved an application by Elm Co. to sell 24 million shares, or 30% of its share capital, in an initial public offering. 

The period for registering requests and book building period will run for six days from Jan. 23 to Jan. 28, 2022.

Retail subscription period will run for four days starting from Thursday, Feb. 3, 2022.

Participating parties: This tranche comprises the parties entitled to participate in the book building process as specified under the book building instructions. The number of shares that will be allocated initially is 24 million, representing 100% of the total IPO. Final allocation of the offer shares will be made after the end of the subscription period for individual investors. The lead managers shall have the right to reduce the number of shares allocated to participating parties to 16.8 million shares, representing 70% of the total offer shares.

Individual investors: This tranche comprises Saudi Arabian natural persons, in addition to any non-Saudi natural person who is resident in the Kingdom or any GCC natural persons, provided they have a bank account with one of the receiving entities and are allowed to open an investment account. The number of shares offered for retail investors amounts to 7.2 million shares maximum, or 30% of total offered shares.

The company is owned by the Public Investment Fund (PIF). It provides integrated technological solutions, including electronic products and advisory services, as well as digital outsourcing and training solutions to both public and private companies. 

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.

The Company has seven subsidiaries, namely:
 

- Saudi Company for Exchanging Digital Information (Tabadul).

- Emdad Al Khebrat.

- Elm Technology Investment Company.

- Umrah Premium Services Company.

- Future Resources Limited.

- Asdam Digital FZ LLC.

- Elm Arkan for Information Systems Technology.

Public Investment Fund (PIF) is currently the 100%-owner of the company. This percentage will decrease to 67 % after the IPO.

The company said, upon finalizing the offering, PIF will sell 2.4 million shares based on the final offer price to the company, to be used in the company’s employee stock option program.