Retail subscription begins today to 3.3 mln Riyadh Cables shares

Logo of Riyadh Cables Group

Retail investors will start today, Nov. 21, subscription to about 3.3 million shares of Riyadh Cables Group Co., or 10% of total offered shares, at SAR 43 each, as set by the book-building process. 

The Capital Market Authority (CMA) approved on Oct. 17 the company's request to float a 22% stake, or 33 million shares in an initial public offering (IPO).

The two-day retail subscription period ends on Nov. 22. 

The company’s institutional offering, which ended last week, was 71.8x covered.

This will be the 16th listing on the main market this year, after East Pipes Integrated Company for Industry (Jan. 24), Scientific & Medical Equipment House Co. (Jan. 31), Elm Co. (Feb. 3), Al-Dawaa Medical Services Co. (Feb. 27), Al Masane Al Kobra Mining Co. (March 9), Nahdi Medical Co. (March 13), Saudi Home Loans Co. (March 27), Retal Urban Development Co. (June 5), Alamar Foods Co. (July 20), Naqi Water Co. (July 27), Arabian Drilling Co. (Oct. 18), MARAFIQ (Oct. 26), Perfect Presentation (Nov. 1) and Americana Restaurants International (Nov. 14).

Last year witnessed nine listings, including Alkhorayef Water and Power Technologies Co. (March 1), Theeb Rent a Car Co. (March 29), Tanmiah Food Co. (Aug. 4), Arabian Internet and Communications Services Co. (solutions) (Sept. 30), ACWA Power (Oct. 11), Arabian Contracting Services Co. (Nov. 15), Nayifat Finance Co. (Nov. 22), Saudi Tadawul Group (Dec. 8) and Almunajem Foods Co. (Dec. 20). 

Company Profile 

Riyadh Cables was established as a limited liability company in 1984 in Riyadh, then it was transformed into a closed joint stock company in 2014.

The company’s current capital stands at SAR 1.5 billion, divided into 150 million shares.

The company's main activities include production, marketing and sale of cables, electric wires, pneumatic conductors and optic fibers, in addition to electrical contracting projects for high voltage cables.

The group has 18 branches in Saudi Arabia engaged in sale and storage of products, all of which are subsidiaries of REW.

Meanwhile, the group has five branches outside the Kingdom, which sell and store the group’s products. Four of these are affiliated to RCM, divided into one branch in Kuwait and three branches in the United Arab Emirates. In addition, the group has one branch affiliated to the Riyadh Cables Co. in the United Arab Emirates (UAE).

The group carries out its manufacturing business through fully owned 15 plants, including 13 in Saudi Arabia, one in Sharjah (UAE), and one in Iraq.

Out of the 15 plants, nine are dedicated to the manufacture of cables, electric wires of all kinds, and communication cables of both types made of copper and optic fibers.

Six other support plants operate to produce raw materials used in the manufacture of cables.

The company has five material subsidiaries and eight non-material subsidiaries, as shows below:

**The company wholly owns the shares, directly and indirectly.