Qualified investors start subscription to 1.5 mln Osool & Bakheet shares today

Logo of Osool & Bakheet Investment Co. (OBIC)

Qualified investors started today, Oct. 15, subscription to 1.5 million shares of Osool & Bakheet Investment Co. (OBIC) in its planned initial public offering (IPO) on Nomu-Parallel Market.

The offered shares represent 18.52% of the company's post-IPO capital of SAR 81 million, divided into 8.1 million shares. The IPO price range was set between SAR 37 and SAR 45 per share.

OBIC will issue 2.1 million new shares, representing 25.92% of its post-increase capital, of which 1.5 million shares will be offered to qualified investors. A total of 600,000 shares, representing about 7.40% of capital, will be allocated to the employee incentive program as treasury shares.

The subscription period will run for five days until Oct. 19.

With OBIC’s IPO, offerings on Nomu reached 21 in 2023.

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.

In June, 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.

- Clients of capital market institutions authorized to carry out management operations, provided they are appointed under terms that enable them to take decisions related to accepting the participation in the share offering and investment in Nomu on behalf of clients without prior consent.

- 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).

- Companies owned by the government, directly or through a portfolio managed by a market institution authorized to practice management operations.

 - Investment funds.

 - 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.

- Legal persons 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 with Edaa, provided they fulfil the following criteria:

1) 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.

2) Hold a net asset value of no less than SAR 5 million.

3) Working or have worked for at least three years in the financial sector.

4) Hold a CMA-approved general certificate in securities dealing.

5) Hold a professional certificate in the field of securities business, approved by an internationally recognized body.

6) Any other persons to be defined by the CMA.

Company Profile

Established in 2005, OBIC operates with SAR 60 million capital, which will rise to SAR 81 million following the offering.

The company's main activities are represented in securities dealing, custody of securities, investment management and fund operation.