Qualified investors start subscription to Meyar’s 265,400 shares today

Logo of Meyar Co.

Qualified investors start today, March 19, subscription to 265,400 shares of Meyar Co. on Nomu-Parallel Market, with an IPO price range of SAR 53-59 per share. 

This represents 20% of Meyar’s SAR 13.27 million capital, or 25% of the company’s capital before increase amounting to SAR 10.62 million. 

Existing shareholders will not receive any of the offering proceeds as they will go for the capital increase.

The offer period will run from March 19-23.

Meyar IPO is the seventh offering on Nomu in 2023, following Ghida Al-Sultan, and Foods Gate Co. on March 12, WAJA Co. on Feb. 12, KnowledgeNet Co. and Bena Steel Industries Co. on Feb. 26, as well as Horizon Food Co. on March 5. 

Nomu saw 19 IPOs last year, including Gas Arabian Services Co., Raoom Trading Co., Al-Jouf Mineral Water Bottling Co., Arabian International Healthcare Holding Co. (Tibbiyah), Arabian Food & Dairy Factories Co. (FADECO), Ladun Investment Co., Amwaj International Co., Saudi Networkers Services Co. (SNS), International Human Resources Co. (IHR), Naba Alsaha Medical Services Co., Arabian Plastic Industrial Co. (APICO), Abdulaziz and Mansour Ibrahim Albabtin Co. (AlBabtain Food), Knowledge Tower Trading Co., Molan Steel Co., Saudi Top Trading Co., Leen Alkhair Trading Co., Nofoth Food Products Co. and Alwaha REIT Fund.

The Capital Market Authority (CMA) approved, on Dec. 5, 2022, the application submitted by the company to register and offer 265,400 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. This is 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 Nomu, 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 who are allowed to open investment accounts inside the Kingdom and accounts with Edaa, provided that they fulfill certain criteria.

They should have executed transactions in the securities markets worth a total 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 includes any other persons to be defined by the CMA.

Company Profile

Meyar was established as a closed joint-stock company in November 1999 in Al Majmaah. It is active, as per its articles of association, in practicing contracting and ready-mix concrete activities.

The company's current activity, as of the prospectus, is the manufacture of hollow cement blocks and bricks, ready-mixed concrete and precast insulated concrete. This is besides the general construction of residential buildings and non-residential buildings and others.