Qualified investors start subscription to Al-Modawat’s 475,000 shares today on Nomu

Logo of Al-Modawat Specialized Medical Co.

Qualified investors start today, Jan. 28, subscription to 475,000 shares of Al-Modawat Specialized Medical Co. in its initial public offering (IPO) on the Nomu-Parallel Market.

The price range has been set between SAR 93 and SAR 111 per share.

The offered shares represent 20% of the company's capital of SAR 23.75 million, divided into 2.38 million shares.

On Sept. 28, the company obtained the Capital Market Authority’s (CMA) approval on the offering, which will run from Jan. 28 until Feb. 5, 2024.

This is the third IPO on Nomu during 2024 after Pan Gulf Marketing Co. on Jan. 10 and WSM Information Technology Co. on Jan. 25.

The subscription is limited to certain categories of investors, including capital market institutions authorized to act on their own account, as well as clients of capital market institutions authorized to carry out management operations.

This is provided that they are appointed under terms that enable them to take decisions related to accepting participation in the share offering and investment in Nomu on behalf of clients without prior consent. 

The categories include the Saudi government, any government body or 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.

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

Natural persons are also among the qualified investors allowed to open investment accounts inside the Kingdom and with Edaa, provided they fulfill certain criteria.

They should have executed transactions in the securities markets worth a total of no less than SAR 40 million, and at least 10 deals in each quarter during the past 12 months.

Natural persons should also have a net asset value of no 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 a professional certificate in the field of securities business, approved by an internationally-recognized body.

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

Al-Modawat is a closed Saudi joint stock company established in Muhayil Asir in 2014 under the name Muhayl National Hospital Co. It currently operates with SAR 19 million in capital. 

According to the company’s commercial register, its activities include medical operation of hospitals, day surgery centers, as well as pharmacy and drug store activities.