Retail subscription for AMAK IPO kicks off today

Logo of Al Masane Al Kobra Mining Co.

Retail investors will start today, March 9, subscription to about 5.94 million shares of Al Masane Al Kobra Mining Co. (AMAK), representing 30% of the shares offered, at SAR 63 each, as set by the book-building process.

The Capital Market Authority (CMA) approved, in December, an application by AMAK to offer 19.8 million shares, or 30% of its share capital, in an initial public offering (IPO).

 The offering includes selling 10.13 million existing shares and issuing 9.67 million new shares.

The retail tranche subscription process will run for three days till March 11.

The company’s institutional offering, which ended last week, was 73.6x covered, with total applications reaching nearly SAR 91.8 billion.

AMAK’s IPO will be the fifth on the main market this year, following the IPO of East Pipes Integrated Company for Industry on Jan. 24, Scientific & Medical Equipment House Co. on Jan. 31, Elm Co. on Feb. 3 and Al-Dawaa Medical Services Co. (DMSCO) on Feb. 27.

Last year witnessed nine IPOs, including Alkhorayef Water and Power Technologies Co., Theeb Rent a Car Co., Tanmiah Food Co., solutions, International Company for Water and Power Projects (ACWA Power), Arabian Contracting Services Co. (Al Arabia), Nayifat Finance Co., Saudi Tadawul Group, and Almunajem Foods Co.

Company Info:

Established in 2007, AMAK’s current capital is SAR 563.3 million, which will increase to SAR 660 million after the IPO.

The company’s main activity is to operate Al Masane and Guyan mines.

The flagship Al Masane mine produces copper and zinc concentrates, as well as silver and gold alloys.

Guyan mine is located 12 kilometers away from Al Masane mine. It produces silver and gold alloys. 

The company's main objectives, in accordance with its bylaws, include production of gold and silver alloys, zinc concentrates, copper concentrates, extracting granite, nickel and lead concentrates, in addition to granite manufacturing, rock blasting and establishing factories for the production of tiles and other building materials.

The company currently has licensing rights for about 152 square kilometers of Guyan and Qattan exploration area, and an area of 54 square kilometers with a mining license under Al Masane and Guyan mines concession.