National Education issues prospectus for IPO on Tadawul

20/09/2018 Argaam

 

National Company for Learning & Education 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 13 million shares, or 30.23 percent of capital, while the issue price will be determined through the book-building process.

 

The retail offering will run from Oct. 22 to Oct. 28.

 

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 (13 million shares) of total offering size to institutional investors, subject to a scaleback to 90 percent (11.70 million shares).

 

Retail investors: Including Saudi and GCC individual investors. Up to 10% of the offering size (1.30 million shares) will be allocated to individuals.

 

Major Shareholders

Shareholder

Number of shares before IPO (mln share)

Stake %

Number of shares after IPO (mln share)

Stake %

Mohammed Ibrahim Al Khudair

21.12

70.39 %

21.12

49.11 %

Mohammed Ibrahim Al Khudair Charitable Org.

5.28

17.60 %

5.28

12.28 %

Others

3.60

12.01%

3.60

8.38 %

Public

--

--

13.00

30.23 %

Total

30.00

100 %

43.00

100 %

 

Company Profile

Company

National Co. for Learning & Education

Stock market

Saudi Stock Exchange Tadawul (TASI)

Company’s core Activities

Owning, establishing and managing the private schools for public education and investment in sports, entertainment and sports clubs for school students

Status

Active

Current Capital

SAR 300 mln

Company’s capital after IPO

SAR 430 mln

 

IPO Details

IPO Percentage

30.23%

Number of IPO shares

13 mln shares

IPO price per share

To be determined by book building process

Eligible investors

- Retail investors: with a maximum of 10% of IPO share (1.3 mln share) allocated to them.

- Institutions: 100% of IPO shares are allocated to them and coud be reduced to 90%

IPO minimum for retail investors

10 shares

IPO minimum for institutions

100,000 shares

IPO maximum for retail investors

250,000 shares

IPO maximum for institutions

2.15 mln shares

IPO period for institutions & book building

11 days from Monday Oct. 1, 2018 until Thursday, Oct. 11, 2018

IPO period for retail investors

7 days from Monday Oct. 22, 2018 until Sunday, Oct. 28, 2018

Allotment and surplus repayment

Nov. 4, 2018

Additional Details

Lead manager & underwriter

Alinma Investment

Financial advisor & institutions IPO book

Al Dukhail Financial Group

Receiving banks

Alinma, Al Rajhi, NCB and Riyad

 

National Education reported a marginal rise year-on-year (YoY) in net profit to SAR 66.9 million (SAR 2.23 EPS) for the fiscal year that ended in August 2017.

 

Annual revenue rose 4 percent YoY to SAR 215.4 million.

 

Income Statement (SAR mln)

Period

August 2014

August 2015

August 2016

August 2017

Revenue

163.76

198.57

207.86

215.42

Net Profit

51.40

63.55

66.51

66.91

Average number of shares (mln share)

30

30

30

30

EPS (SAR/ share)

1.71

2.12

2.22

2.23

 

Balance Sheet (SAR mln)

Period

August 2014

August 2015

August 2016

August 2017

Assets

391.3

425.02

450.66

484.71

Short-term loans

5

2.76

3.25

12.34

Long-term loans

34

18.70

54.87

58.02

Total liabilities

113.3

124.5

127.7

145.6

Capital*

200

200

300

300

Shareholders’ equity

277.9

300.5

322.9

357.9

*The capital was raised through bonus shares.                                                        

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