Neft Alsharq Company for Chemical Industries intends to offer 20% of its shares on the Saudi parallel market “NOMU,” with the price range for its potential offering set between 3 and 3.6 riyals per share.
Details
Neft Alsharq plans to offer 5 million shares, representing 20% of its capital after the increase, which amounts to 25 million riyals.
The institutional order book building period for qualified investors is scheduled to start on May 26th and end on June 2nd.
So What
The company, established in 2012, will allocate two million riyals of the proceeds to cover the offering expenses. The remainder will be allocated to support the growth of its assets and finance working capital.
Neft Alsharq describes itself as one of the leading companies in the production and packaging of oils in the Middle East and North and East Africa, with a customer network spanning 35 countries. It aims to be a leading Saudi brand in petroleum products.
Some Context
A recent report by “PwC Middle East” revealed that the local stock exchange almost entirely dominated initial public offerings (IPOs) in the Gulf countries during the first quarter of this year.
The report indicated that most IPOs took place on the main market “Tadawul” or “NOMU,” except for one offering by “Parkin” in the Dubai market.
Three IPOs on the main market raised a total of $667 million, while six offerings on the parallel market gathered approximately $57 million.
Saudi and UAE markets witnessed a total of 10 public offerings, generating revenues of $1.2 billion during the first quarter of this year. This reflects strong momentum in public offering activity in the Middle East and North Africa region, according to “Ernst & Young’s” report.
Now What
Tadawul announced that the Eid al-Adha holiday will begin at the end of June 13th, and trading will resume on June 23rd.
