Qualified investors start subscription to 958,750 shares of Leen Alkhair today

Logo of Leen Alkhair Trading Co.

Qualified investors start today, Dec. 4, subscription to 958,750 shares, or 23.5% of Leen Alkhair Trading Co.’s share capital, on Nomu-Parallel Market. The initial public offering (IPO) was priced between SAR 65 and SAR 69 per share. 

The subscription period will run five days until Dec. 8.

Leen Alkhair’s current shareholders will sell 550,770 shares, or 13.50% of the company’s capital post-IPO.

A total of 407,980 new shares will be issued to increase capital from SAR 36.72 million (3.67 million shares) to SAR 40.8 million (4.08 million shares) after the offering.

Leen Alkhair’s IPO is the 17th on Nomu this year, following the listing of Gas Arabian Services Co. on Jan. 23, Raoom Trading Co. on Jan. 30, Al-Jouf Mineral Water Bottling Co. on Feb. 6, Arabian International Healthcare Holding Co. (Tibbiyah) on Feb. 15, Arabian Food & Dairy Factories Co. (FADECO) on May 11, Ladun Investment Co. and Amwaj International Co. on May 22, Saudi Networkers Services Co. on July 24, International Human Resources Co. (IHR) on July 31, Naba Alsaha Medical Services Co. on Aug. 8, Arabian Plastic Industrial Co. (APICO) on Sept. 11, AlBabtain Food on Sept. 25, Knowledge Tower on Oct. 30 as well as Molan Steel Co., Rayan Advanced Industrial Co. on Nov. 20 and Saudi Top Trading Co. on Nov. 27.

On Sept. 28, the Capital Market Authority (CMA) approved the company’s application to offer shares on Nomu.

The subscription is limited to certain categories of investors, including capital market institutions authorized to act on their own account, as well as clients of capital market institutions authorized to carry out management operations, provided that they 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 clients without prior consent.

The categories include the Saudi government, any government 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).

They also include companies owned by the government, directly or through a portfolio managed by a market institution authorized to practice management operations; investment funds; in addition to companies and funds established in the GCC countries.

The investors qualified to participate in the subscription include non-resident foreigners who are allowed to invest in the parallel market; qualified foreign financial institutions; and any legal person entitled to open investment accounts inside the Kingdom and accounts with Edaa.

Natural persons are also among the qualified investors allowed to open investment accounts inside the Kingdom and accounts with Edaa, provided that they fulfil certain criteria.

They should have executed deals in the securities markets, at a total value of no less than SAR 40 million, and no less than 10 deals in each quarter during the past 12 months.

Natural persons should also have net assets value of no less than SAR 5 million and be working or have worked for at least three years in the financial sector. They should hold a general certificate in securities dealing, approved by the CMA; and a professional certificate in the field of securities business, approved by an internationally recognized body.

The list of qualified investors also includes any other persons to be defined by the CMA.

Company Profile:

The company was established in 2006 in Riyadh as a closed joined stock company. Its current capital stands at SAR 36.72 million, divided into 3.67 million shares.

Its core business activities are the wholesale of vegetables, fruits, meat, dairy products, dates, eggs, frozen meat and poultry products, sugar and the related products, honey, foods and beverages.

The actual business of Leen Alkhair currently covers the production, purchase and import of a wide range of agricultural products and crops (fresh vegetables and fruits). Leen Alkhair also provides packaging, marketing and selling services of these products on a daily basis through a logistics system and a distribution network in the Kingdom. The company also manufactures and packs food products such as sauces, spices under Leen Alkhair brand, by cooperating with several food manufacturing factories across the Kingdom.

The following tables show the main details of Leen Alkhair’s IPO:

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