Qualified investors start subscription to 532,400 shares of Molan Steel today

Logo of Molan Steel Co.

Qualified investors start today, Nov. 20, subscription to 532,400 shares, or 20.02% of total shares, of Molan Steel Co. on Nomu-Parallel Market, with an initial public offering (IPO) price range of SAR 18-24 per share.

The subscription period will run for three days until Nov. 22.

The company is offering 532,414 ordinary shares, representing 20.02% of its post-IPO capital and 23.15% of its pre-IPO capital. This will take place through increasing the company’s capital from SAR 23 million to SAR 26 million via issuing 360,000 ordinary shares, in addition to selling 172,400 shares held by Namaa Kalda Trading, Contracting and Real Estate Co., one of Molan steel’s shareholders.

On Sept. 26, the Capital Market Authority (CMA) approved the company’s application to offer shares on Nomu.

Molan Steel is the 14th 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, Naba Alsaha Medical Services Co. on Aug. 8, Arabian Plastic Industrial Co.’s (APICO) on Sept. 11, AlBabtain Food on Sept. 25 and Knowledge Tower on Oct. 30.

The subscription is limited to certain categories of investors, including capital market institutions authorized to act on their own account, as well as clients of capital market institutions authorized to carry out management operations, provided that they are appointed under terms that enable them to take decisions related to accepting the participation in the share offering and investment in the parallel market on behalf of the clients without prior consent.

The categories also include Saudi government, any government body, any international entity approved by the CMA or the Saudi market, or any other financial market recognized by the CMA or the Securities Depository Center (Edaa).

They also include companies owned by the government, directly or through a portfolio managed by a market institution authorized to practice management operations; investment funds; in addition to companies and funds established in the GCC countries.

The investors qualified to participate in the subscription include non-resident foreigners who are allowed to invest in the parallel market; qualified foreign financial institutions; and any legal person entitled to open investment accounts inside the Kingdom and accounts with Edaa.

Natural persons are also among the qualified investors allowed to open investment accounts inside the Kingdom and accounts with Edaa, provided that they fulfil certain criteria.

They should have executed deals in the securities markets, at a total value of not less than SAR 40 million, and no less than 10 deals in each quarter during the past 12 months.

Natural persons should also have net assets value of not less than SAR 5 million and be working or have worked for at least three years in the financial sector. They should hold a general certificate in securities dealing, approved by the CMA; and a professional certificate in the field of securities business, approved by an internationally recognized body.

The list of qualified investors also includes any other persons to be defined by the CMA.

 Company Profile 

Molan Steel was established as a Saudi closed joint stock sole proprietorship in 2015, headquartered in Riyadh. The current capital stands at SAR 23 million, divided into 2.3 million shares.

The company's activities are represented in wholesale of metal and iron strips and blocks, wholesale of metal and iron pipes, wholesale of iron tools and locks, wholesale of industrial metal roofs, doors, windows and metalwork.

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