Al Kathiri’s IPO ends 251% oversubscribed

The initial public offering (IPO) of Al Kathiri Holding Co. on the Nomu Parallel Market ended 251 percent oversubscribed on Tuesday, according to FALCOM Financial Services (Falcom), the offering’s financial advisor.

Shares were priced at SAR 31 each, while a total of 97 subscribers bought 819,000 shares at a total value of SAR 60 million.

The company offered 26.1 percent of capital, or 819,000 shares in an IPO that ran from May 30 to June 6, data compiled by Argaam showed.

Last April, the company’s board of directors approved to raise capital from SAR 27.3 million to SAR 31.4 million after the IPO is completed.

The company’s ownership structure is divided between Mishal Alkathiri who owns a 72.4 percent stake, and others (27.5 percent).

The Saudi contractor reported net earnings of SAR 7.91 million in 2016, compared to SAR 7.78 million in a year earlier.

 The company, which is capitalized at SAR 27.3 million, is engaged in the field of contracting, wholesale as well as retail sale of building materials.