Retail subscription to Jahez IPO starts today

Logo of Jahez International Company for Information Systems Technology

Jahez International Company for Information Systems Technology will start today, Dec. 23, its retail subscription on Nomu Parallel Market. Individual subscribers will start taking up about 272,800 shares at SAR 850 each, as set by the book-building process.

The retail offering will run for four days until Dec. 26.

On Sept. 29, the Capital Market Authority (CMA) approved the company’s application for offering 1.36 million shares, or 13% of its capital.

After consultation with the financial advisor, the company decided to increase the offering shares from 1.36 million ordinary shares (representing approximately 13% of capital after the offering) to 1.89 million shares (representing 18% of capital after the offering).

The IPO includes Jahez’ sale of 996,720 outstanding shares to Hassana Investment Co. as a cornerstone investor to 524,589 shares from total offer shares, in addition to issuing 891,800 new shares.

The book-building process for eligible (non-retail) investors was successfully completed, with the final offering price set at SAR 850 per share, and a coverage ratio of 38.8 times.

The following table indicates the shares allotment for participating investors’ categories:

Shares Allotment for Participating Investors’ Categories
Investors Categories	Stake
Qualified investors (non-retail)*	100% of the IPO shares of non-retail investors who participated in the book-building process, reduced to 85.6% of the total offering shares or 1.62 million shares in the event of retail investors IPO.
Qualified investors (retail)	A maximum of 272,800 shares representing 14.4% from the total IPO shares

*Including 524,600 shares that will be allocated to the main investor, Hassana Investment.

Eligible retail investors’ category includes:

- Natural persons who may open an investment account in the Kingdom and an account at the Securities Depository Center (Edaa), and meet any of the following criteria:

- Performed transactions on the stock markets with a total value of at least SAR 40 million and at least 10 transactions in each quarter over the past 12 months.

- The net value of assets should not be less than SAR 5 million.

- To work or have worked for at least three years in the financial sector.

- To hold the General Securities Qualification Certificate, approved by the CMA.

- To hold a professional certificate specializing in securities business accredited by an internationally recognized entity.

IPO Highlights
Issue percentage (%)	18% (1.89 mln shares)
Percentage of shares to qualified retail investors	14.4% of total IPO shares
Number of shares to qualified retail investors	272,790 shares
IPO price	SAR 850/ share
Maximum limit	65,000 shares
Minimum limit	10 shares
Offering period	Dec. 23 - 26
Final allocation	Jan. 3, 2022
Surplus refunds (if any)	Jan. 3, 2022

Company Info:

Jahez International Company for Information Systems Technology was established in 2017 as a limited liability company (LLC) in Riyadh with a capital of SAR 1 million, which was later increased to SAR 5 million.

In December 2020, the company was transformed into a closed joint-stock company. Capital was increased to SAR 96 million in May 2021. The company then obtained an approval, in June 2021, on increasing capital to SAR 104.92 million, which will become its capital after the IPO.

Company Profile
Company	Jahez International Company for Information Systems Technology
Market	Nomu-Parallel Market
Core Activities	Online food delivery platform
Capital	SAR 96 mln
Capital after IPO	SAR 104.92 mln

The company's activities in accordance with its bylaws are represented in wholesale and retail trade, repair of motor vehicles and motorcycles, transport and storage, accommodation and food services activities, information and communication, administrative services and support services.

The core activities also include the provision of wireless input data services, systems analysis, design and programming, in addition to, delivery services through electronic platforms.

Jahez owns four subsidiaries as follows:

- PIK platform, a quick e-commerce platform that aims to connect customers to their favorite brands through quick delivery from mega stores, supermarkets, food stores, pharmacies and local retailers directly.

- CoKitchens, which was acquired by the group in 2020 and focuses on cloud kitchens all over the Kingdom.

- Logi Co., established in 2021 as a market enabler for the e-commerce and delivery industry in general by providing logistical solutions.

- Red Color platform, established as the group’s investment arm in order to pursue its growth objectives.

Company Shareholders
Shareholders	Before Offering		After Offering
Shareholders	Number of shares (‘000 shares)	Ownership%	Number of shares (‘000 shares)	Ownership%
Alamat International Limited Co.	5,760	60%	5,046.76	48.10%
Osool Impact for Communication and Technology	3,840	40%	--	--
Impact Finance Private Equity Fund – Information Technology and E-Commerce	--	--	3,364.51	32.07%
Treasury shares	--	--	192.00	1.83%
Hassana			524.59	4.99%
The public	--	--	1,363.93	13%
Total	9,600	100%	10,491.8	100%

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