Umm al Qura Cement details spending of its SAR 275 million IPO proceeds

Umm al-Qura Cement Co said that net proceeds from its initial public offering were SAR 265.6 million, after discounting cost of IPO and other expenses.

The company detailed its spending as of Sept 30, 2014:

SAR 9.4 million IPO cost and fees

SAR 77.2 million on construction of the second production line with Sinoma International 

The cost of the IPO was initially estimated to be SAR 12 million but advertisement and marketing cost less than expected.

The construction of the second production line was estimated to be SAR 263 million and was supposed to take place in the 2nd and 3rd quarters of 2014 but the construction is still at early stage.

Up to 19 percent of the offshore engineering services was completed so far

Up to 15 percent of the new Portland Cement plant was completed.

Umm al-Qura Cement Co sold 27.5 million shares, or 50 percent of the company, for SAR 10 a share at an initial public offering that took place from April 29 to May 5, 2014.