National Learning discloses use of IPO proceeds

National Company for Learning and Education (NCLE) has disclosed use of its initial public offering (IPO) proceeds until the end of February 2019.

The gross proceeds of the IPO reached SAR 247 million, while net proceeds stood at SAR 232 million after deducting IPO related expenses and fees of around SAR 16 million, the company said in a statement to Tadawul on Tuesday.

- An amount of SAR 59.6 million was allocated to finance and building an educational complex in Buraidah, Qassim.

- A total of SAR 51.15 million and SAR 58.6 million went towards establishing Al Qasr educational complexes 1 and 2 in Al Khobar, respectively.

- A sum of SAR 51.99 was directed to establishing Al Taraji educational complex in Dammam, Eastern Province.

The following variances were observed compared to the amounts stated in the IPO prospectus:

1) Only SAR 23.8 million was spent on the educational complex in Buraidah from the allocated amount of SAR 31.02 million as of the end of the second quarter ending on Feb. 28, 2019, due to a five-month delay in receiving the IPO proceeds which was expected in June 2018, but instead was received in November 2018.

2) Only SAR 174,100 was spent on Al Qasr educational complex 1 from the allocated amount of SAR 9 million as of the end of Q2 period ending February 2019, due to a delay in receiving IPO proceeds and in obtaining regulatory permits.

3) Only SAR 70,000 was spent on Al Qasr educational complex 2 from the allocated amount of SAR 10.2 million as of the end of Q2 period ending February 2019, due to a delay in receiving IPO proceeds and in obtaining regulatory permits.

4) Only SAR 287,477 was spent on Al Taraji educational complex in Dammam from the allocated amount of SAR 9.6 million as of the end of Q2 period ending February 2019, due to a delay in receiving IPO proceeds and in obtaining regulatory permits.

The variances did not have a financial impact, so far. Any developments will be disclosed as they occur, the statement added.

According to data compiled by Argaam, the Riyadh-based school operator offered 13 million shares in an IPO, of which 90 percent was offered to institutional investors and 10 percent to retail investors (1.3 million shares).