Ataa Educational Co. has issued a prospectus for its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul) after obtaining the approval of the Capital Market Authority (CMA) last May.

 

The company will float 12 million shares, or 30 percent of capital, while the issue price will be determined later on.

 

Read: Ataa Educational obtains regulatory approval for IPO

 

The retail offering will run from July 14 to July 18.

 

The IPO targets two tranches:

 

Institutional investors: Including all categories of investors entitled to participate in the book-building process. The company will offer 100 percent (12 million shares) of total offering size to institutional investors, subject to a scaleback to 90 percent (10.80 million shares).

 

Retail investors: Including Saudi and GCC individual investors. Up to 10% of the offering size (1.20 million shares) will be allocated to individuals.

 

National Advanced Ebdaa Trading Co. owns a 38 percent stake in Ataa.

 

Major Shareholders

Shareholder

Number of shares before IPO (mln)

Stake

%

Number of shares after IPO (mln)

Stake

%

National Creative Development Trading Co.

15.20

 38.00%

10.64

 26.60%

RZM Investment Co.

11.37

 28.42%

7.96

 19.89%

Ahmed AlMuteb

8.64

 21.60%

6.05

 15.12%

Total

35.21

 88.02%

24.65

 61.61%

 

Company’s Profile

Company

Ataa Educational Co.

Market

TASI

Main activities

Establishing, owning and operating national and international schools

Status

Active

Capital

SAR 400 mln

 

IPO Summary

Issue size

30%

Number of shares offered for retail investors

A maximum of 1.2 mln ordinary shares representing 10% of IPO shares

IPO Price

To be determined

IPO size for retail investors

--

Qualified subscribers

Saudis and GCC retail investors

IPO minimum for retail investors

10 shares

IPO maximum for retail investors

250,000 shares

IPO minimum for institutional investors

100,000 shares

IPO maximum for institutional investors

1.999 mln shares

IPO period for retail investors

From Sunday July 14 until Thursday July 18

Allotment date

July 25, 2019

Surplus refund

July 25, 2019

 

Additional Information

Financial advisor, lead manager, underwriter

HSBC

Receiving banks

NCB, Al Rajhi, Riyad, SABB

 

Ataa Educational reported a year-on-year (YoY) drop in net profit to SAR 33.28 million (SAR 0.83 EPS) for the six-month period ending on Jan. 31, 2019, compared to SAR 40.96 million a year earlier.

 

Annual revenue declined 1 percent YoY to SAR 157.9 million.

 

The ISO 9001 certified educational firm was established in 1992, and has been operating in the public education sector for 30 years, since the establishment of its first school in Riyadh in 1989.

 

The firm has been instrumental in the acquisition of several educational complexes in Riyadh, and currently runs 13 educational campuses. It also holds the AdvancedED academic accreditation.

 

Income Statement (SAR mln)

Period

Six months ended Jan. 31, 2018

Six months ended Jan. 31, 2019

Variation

Revenue

159.37

157.91

(1%)

Net Profit

40.96

33.28

(19%)

Average number of shares (mln)

40.0

40.0

--

EPS (SAR/share)

1.02

0.83

(19%)

 

Sales and Net Profit (SAR mln)

Period

FY ended July 31, 2016

FY ended July 31, 2017

FY ended July 31, 2018

Revenue

290.08

338.29

325.19

Net Profit

82.66

96.69

87.91

Average number of shares (mln)

40.0

40.0

40.0

EPS (SAR/share)

2.07

2.42

2.20

 

Balance Sheet (SAR mln)

Item

July 31, 2016

July 31, 2017

July 31, 2018

Jan. 31, 2019

Cash & cash equivalent

20.57

26.52

10.17

24.19

Current assets

95.34

108.73

100.06

91.64

Non-current assets

811.18

860.58

910.24

919.77

Total assets

906.52

969.32

1010.30

1011.41

Current liabilities

173.52

143.88

118.20

170.54

Non-current liabilities

175.21

185.93

167.09

142.83

Total liabilities

349.30

329.81

285.29

313.37

Capital

216.41

216.41

400.00

400.00

Shareholders’ equity

557.22

639.51

725.01

698.04

 

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