Qualified investors start subscription to Arabian Plastic IPO today

Logo of Arabian Plastic Industrial Co.

Qualified Investors will start today, Sept. 11, subscription to one million ordinary shares, or 20% of Arabian Plastic Industrial Co.’s(APICO), in an initial public offering (IPO) on Nomu-Parallel Market. 

The offering will run until Sept. 13, with the price range set at SAR 24-27 per share. 

This is the 11th IPO on Nomu since the beginning of the year, following the listing of  Gas Arabian Services Co.  on Jan. 23, Raoom Trading Co. on Jan. 30, Al-Jouf Mineral Water Bottling Co. on Feb. 6, Arabian International Healthcare Holding Co. (Tibbiyah) on Feb. 15, Arabian Food & Dairy Factories Co. (FADECO) on May 11, Ladun Investment Co. and Amwaj International Co. on May 22, Saudi Networkers Services Co. on July 24, International Human Resources Co. (IHR) on July 31 and Naba Alsaha Medical Services Co. on Aug. 8.

On June 29, the Capital Market Authority (CMA) approved the company’s application to offer and list its shares on Nomu. 

The offering is confined to qualified investors defined as capital market institutions acting for their own account and clients of a capital market institution authorized by the authority to conduct managing activities, provided that this capital market institution is appointed as an investment manager on terms that enable decision-making with respect to the acceptance of an offer and investment on Nomu on the client’s behalf without obtaining a prior approval from the latter.  

This is besides the Kingdom’s government, any government body, any supranational authority recognized by the authority or the exchange, any other stock exchange recognised by the authority or the depository center, in addition to government-owned companies either directly or through a portfolio managed by a capital market institution authorized to carry out managing activities. This also includes companies and funds established in a GCC state, and investment funds. 

Non-resident foreigners, who are permitted to invest on Nomu and meet the requirements stipulated in the Guidance Note for the investment of Non-Resident Foreigners in the Nomu-Parallel Market, are also eligible, together with qualified foreign financial institutions and any other legal person allowed to open an investment account in the Kingdom and an account with Edaa.   

Qualified investors also include the natural persons who are allowed to open an investment account in the Kingdom and an account with Edaa, and have conducted transactions of not less than SAR 40 million in total in security markets, and not less than 10 transactions in each quarter during the last 12 months, with net assets of a minimum of SAR 5 million. They should also work or have worked for at least three years in the financial sector, holding the General Securities Qualification Certificate, which is recognized by the CMA and any professional certificate related to the securities business and accredited by an internationally-recognized entity, in addition to any other persons delegated by the authority.  

APICO is a Jeddah-based closed corporation incepted in 1993. The company is capitalized at SAR 50 million, divided into five million shares. It operates in the manufacturing of plastic cans and containers, with three main business divisions, namely injection molding, thermoforming, film and blow molding. 

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