Qualified investors start subscription to Quara Finance’s 2.65M shares today on Nomu

Logo of Quara Finance Co.

Qualified investors start today, Feb. 4, subscription to 2.65 million shares of Quara Finance Co., scheduled to list on the Nomu-Parallel Market. The price range has been set between SAR 13 and SAR 15 per share.

The shares offered represent 8.83% of Quara’s SAR 300 million capital, divided into 30 million shares.

The share sale will run until Feb. 8 for qualified investors.

This is the fourth IPO on Nomu during 2024 after Pan Gulf Marketing Co. on Jan. 10, WSM Information Technology Co. on Jan. 25, and Al-Modawat Specialized Medical Co. on Jan.  28.

In December 2023, the company obtained the Capital Market Authority’s (CMA) approval on the offering.

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 participation in the share offering and investment in Nomu on behalf of clients without prior consent. 

The categories include the Saudi government, any government or international entity approved by the CMA, the Saudi market, 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. This is in addition to investment funds, companies and funds established in the GCC countries.

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 with Edaa.

Natural persons allowed to open investment accounts inside the Kingdom and with Edaa, provided they fulfil certain criteria, including the below:

They should have executed transactions in the securities markets worth a minimum of SAR 40 million, and at least 10 deals in each quarter during the past 12 months.

Natural persons should also have a net asset value of at least 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.

In 2009, Quara Finance was established in Riyadh as a limited liability company, then it was transferred into a closed Saudi joint stock company in 2013.

The company’s activities include consumer, lease, and SME financing.