Qahtani Auction kicks off IPO on Nomu today

The initial public offering (IPO) of Saud Qahtani Auction Co. on Nomu Parallel Market will begin today, Feb. 14 and run until Mar. 4, financial advisor Musharaka Capital said in a statement on Thursday.

The share sale marks the 11th public offering on Nomu, since market launch in February 2017.

The maximum and minimum subscription limits were set at 99,999 shares and 10 shares, respectively.

The allotment date will be announced no later than Mar. 12, while surplus refunds – if any - will be disclosed by Mar. 18.

The company will float 780,000 ordinary shares, or 39 percent of its SAR 20 million capital to qualified investors, Argaam earlier reported.

On Sept. 27, 2018, the Capital Market Authority (CMA) approved the listing of 780,000 shares of Qahtani Auction on the Nomu parallel market.

Al Qahtani Group was established in 1970 to buy and sell equipment, trucks, cars and all movables while cars and equipment showrooms and supporting services were launched in 1988.

In 2010, Saud Qahtani Auction Co. was established to hold and run auctions for all movables. The head office is located in Dammam in addition to the newly opened branches in Jeddah and Yanbu.

The auction company is planning to open new branches in Riyadh and Medina in 2018, in line with its future expansion plans.

Breakdown of the Company’s Contracts
Item	Annual rent (SAR ‘000)	Area (‘000 Sqm)	Contract term	Contract period
Headquarter (Dammam)	1,500	50	10	From April 15, 2016 to April 14, 2026
Jeddah’s office	400	28	12	From Nov. 1, 2016 to Oct. 31, 2028
Yanbu’s office	250	17	5	From Nov. 1, 2016 to Oct. 31, 2021

Major Shareholders After IPO
Shareholder	Number of shares before IPO (‘000)	Stake %	Number of shares after IPO (‘000)	Stake %
Saud Al Qahtani	1,600	80 %	976	48.8 %
Faleh Saud Al Qahtani	200	10 %	122	6.1 %
Saeed Saud Al Qahtani	200	10 %	122	6.1 %
Public	--	--	780	39 %
Total	2,000	100 %	2,000	100 %

Company Profile
Company	Saud Al Qahtani Auction Co.
Stock market	Nomu- Parallel Market
Company’s core business	Wholesale & retail trade, import & export of machinery, heavy and light equipment & spare parts, and establishing and organizing of public auctions
Company’s status	Active
Company’s capital	SAR 20 mln

IPO Details
IPO Percentage	39%
Number of IPO shares	780,000 shares
IPO price per share	SAR 68 : SAR 78
Eligible investors	Qualified investors
IPO minimum	10 shares
IPO maximum	99,999 shares
IPO period	From Feb. 14, 2019 until March 4, 2019
Allotment	March 12, 2019
Surplus repayment	March 18, 2019
Additional Details
Lead manager & Financial advisor	Musharaka Capital
Receiving bank	ANB
Banks the company deals with	NCB, Albilad, Al Rajhi, Alinma

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