Subscription to Al-Rasheed 1.44M shares starts today on Nomu

Logo of Mohammed Hadi Al-Rasheed Co.

Qualified investors start today, April 28, subscription to 1.44 million shares of Mohammed Hadi Al-Rasheed Co., which is scheduled to list on the Nomu-Parallel Market. The price range has been set at SAR 22-28 per share.

Shares offered for subscription represent 12% of the capital of SAR 120 million, divided into 12 million shares.

For More IPOs

The subscription period will run until May 6.

This is the eighth IPO on Nomu during 2024 after Pan Gulf Marketing Co. on Jan. 10, WSM Information Technology Co. on Jan. 25, Al-Modawat Specialized Medical Co. on Jan.  28, Quara Finance Co. on Feb. 4, Al Mohafaza Company for Education on Feb. 28, TAQAT Mineral Trading Co. on March 6 and Qomel Co. on April 21.

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 accounts, 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 person 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 and who meet the requirements stipulated in the guidelines for investment of non-resident foreigners in Nomu.

They also include 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.

Company Profile

 In 2000, the company was established as a sole proprietorship in Riyadh and converted into a closed Saudi joint stock company in 2021.

The company currently manufactures marble and granite, while specializing in producing and selling silica sand and gravel. It also produces and sells asphalt concrete, in addition to contracting and maintenance.