Qualified investors start subscription to 5 mln shares of Ladun Investment today

Logo of Ladun Investment Co.

Qualified investors start today, May 22, subscription to 5 million shares of Ladun Investment Co. on Nomu Parallel Market, with an initial public offering (IPO) price range set between SAR 15 and SAR 18 per share.   

The subscription period will run five days until May 26.  

The IPO of Ladun is the sixth on Nomu in 2022 after the offerings of five companies during the year.  

On March 28, the Capital Market Authority (CMA) approved the company’s application to offer 5 million of its capital on Nomu.   

The subscription is limited to certain categories of investors. These categories include capital market institutions authorized to act on their own account, as well as clients of capital market institutions authorized to carry out management operations, provided that they are appointed under terms that enable them to take decisions related to accepting the participation in the share offering and investment in the parallel market on behalf of the clients, without their prior consent.  

They also include Saudi government, any governmental body, any international entity approved by the CMA or the Saudi market, or 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; investment funds; in addition to companies and funds established in the GCC countries.  

The investors qualified to participate in the subscription include non-resident foreigners who are allowed to invest in the parallel market; , qualified foreign financial institutions; and any legal person entitled to open investment accounts inside the Kingdom and accounts with Edaa.  

Natural persons are also among the qualified investors allowed open investment accounts inside the Kingdom and accounts with Edaa, provided that they fulfil certain criteria. They should have executed deals in securities markets, at a total value of not less than SAR 40 million, and no less than 10 deals in each quarter during the past 12 months. Natural persons should also have net assets value of not less than 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 to hold a professional certificate in the field of securities business, approved by an internationally recognized body.  

The list of qualified investors also includes any other persons to be defined by the CMA.  

 Company Profile   

Ladun was established in 2004 as a limited liability company in Riyadh with a capital of SAR 2.14 million.  

In 2011, Ladun was transformed into a closed joint stock company with current capital of SAR 500 million.   

According to the company’s commercial register, it carries out real estate activities, including the purchase and sale of land and real estate, management and rental of residential and non-residential properties, as well as real estate development.  

Ladun covers the entire value chain for real estate development and real estate asset management from design, building and construction work to the delivery of electrical and mechanical engineering technology services, supported by a specialized company to achieve integrated sustainability standards, and a company specialized in importing materials and basic supplies for real estate development work.  

Meanwhile, the company provides technologies as well as development, building and construction supplies (air conditioning and firefighting solutions, building facades and aluminum panels, highly-efficient insulated concrete forms ICF, and prefabricated walls) through a range of specialized factories. It also owns a company specialized in the management of facilities (operation and maintenance) and civil security guards for residential and commercial compounds.