Qualified investors start subscription to 2 mln shares of Rayan Advanced today

Logo of Rayan Advanced Industrial Co.

Qualified investors start today, Nov. 20, subscription to 2 million shares, or 20% of Rayan Advanced Industrial Co.'s share capital, on Nomu-Parallel Market, with an IPO price of SAR 72 per share.

The subscription period will run five days until Nov. 24.

Rayan Advanced follows 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. (APICO) on Sept. 11, AlBabtain Food on Sept. 25 and Knowledge Tower on Oct. 30.

In addition, Molan Steel Co. also opened the subscription for qualified investors today on Nomu.

On Oct. 19, the Capital Market Authority (CMA) approved the company’s application to offer shares on Nomu.

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:

The company was established in 1989 in the Second Industrial Area, Riyadh as a closed joined stock company. Its current capital stands at SAR 100 million, divided into 10 million shares.

The firm's current activity is represented in the production, sale and marketing of plastic products used in specialized packaging and packing, which depend on high- and low-density polyethylene of various uses.

Rayan Advanced has three factories in the Second Industrial Area, Riyadh, with an annual production capacity of nearly 21,700 metric tons.

The company's activities, as per the articles of association, include the manufacturing of paper bags, semi-manufactured products from plastics such as plates, strips, sheets, tapes, pipes, hoses and their fittings, in addition to plastic bags and household appliances, kitchen utensils and single-use decorations. This is besides general warehouses that include a variety of goods.