Al Kathiri ‘first company’ to debut on Tadawul today

Al Kathiri Holding Co. will begin trading today, November 3, 2019, on the Saudi Stock Exchange (Tadawul) with symbol 3008 under basic materials sector.

The stock’s daily fluctuation limit will stand at 10 percent. 

On October 28, 2019, Tadawul approved Al Kathiri’s request to transition from Nomu Parallel Market to the main market. The company has SAR 45.21 million in capital, divided into 4.52 million shares.

Al Kathiri’s opening price is SAR 69, based on its last close on Nomu.

Al Kathiri, which marks the first transition from Nomu to the main market, brings up the number of listed firms on Tadawul to 177, excluding the 17 listed REITs.

Key highlights:

On July 9, 2017, Al Kathiri was listed on Nomu with SAR 31.4 million capital, divided into 3.14 million shares.

The company was incorporated in 2008 as a sole establishment in Riyadh, and was named Mohammed Nasser Al Kathiri Foundation with total capital of SAR 100,000.

The capital was then raised to SAR 37.67 million in August 2018 and to SAR 45.21 million in April 2019.

Mohammed Nasser Al Kathiri, who serves as the company’s chief executive officer and managing director, holds a 64.75 percent stake in Al Kathiri.

Al Kathiri’s outstanding shares have reached nearly 1.59 million shares, or 35.24 percent of its total shares (4.52 million).

The company operates in two strategic sectors, as follows:

1) Sale, transport and distribution of cement and basic materials:

The company sells, transports, and distributes cement and basic construction materials (gravel and various sand types) to local markets across the Kingdom, with a main focus on the central and western regions, where the company operates its own transportation fleet.

2) Production and sale of ready-made concrete:

The company produces and sells ready-made concrete through Al Kathiri Holding Concrete Factory, in the north of Riyadh. The factory’s monthly production capacity is estimated at 50,000 cubic meters of ready-made concrete.

Al Kathiri has two 100 percent-owned subsidiaries, Alian Industry Co. and Msandh El Emdad Co.

Alian was established in August 2018 with SAR 500,000 in capital. Alian provides the holding company with its current and future needs of ready-made concrete

Incorporated in March 2008, Msandh El Emdad Co. had capital of SAR 100,000. It provides logistic services and supports the transport sector inside Al Kathiri Holding Co.

Al Kathiri will fully comply with Tadawul’s listing requirements, as follows:

Meanwhile, other five players on Nomu announced their board of directors’ approval on transition to the Saudi main market.

Based on the listing rules issued by the Capital Market Authority (CMA), the companies aiming to transition from Nomu to Tadawul should be initially listed on Nomu for two years.

Their board reports should be also disclosed to the public. Those company are required to fully comply with listing regulations on Tadawul, except for market capitalization, as the minimum market cap should stand at SAR 200 million in average six months before submitting transition requests.