Thob Al-Aseel’s IPO 150% oversubscribed

Thob Al-Aseel Co.’s initial public offering (IPO) on the Nomu parallel market was 150.3 percent oversubscribed, said Falcom Financial Services, the financial advisor and lead manager for the listing.

Subscription closed on Thursday, May 18.  A total of 204 subscribers bought three million shares at SAR 85 each, totaling SAR 383.3 million.

The issue price range was set between SAR 75 and SAR 95 per share.

The company offered 20 percent of share capital, or three million shares, in the IPO that started on May 7.

The final allocation of shares and all refunds will be completed by May 24, the company said.

Thob Al-Aseel reported a net profit of SAR 74.45 million for the period between Jan. 1 and Sep. 4, 2016.

The clothing manufacturer expects to make SAR 500 million in sales and SAR 110 million in profit after its merger with Al-Jedaie Group earlier this year, chairman Faisal Al-Jedaie told Argaam in an interview this month.

Thob Al-Aseel, which was set up 30 years ago, was converted into a closed shareholding company in September 2016. It manufactures ready-made garments for wholesale and retail trade.