Qualified investors start subscription to 880,000 shares of Saudi Top Trading today

Logo of Saudi Top Trading Co.

Qualified investors start today, Nov. 27, subscription to 880,000 shares, or 22% of Saudi Top Trading Co.’s share capital, on Nomu-Parallel Market, with an IPO price of SAR 133 per share, determined though a book-building process.

The subscription period will run five days until Dec. 1.

Saudi Top Trading is the 16th in Nomu this 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. (APICO) on Sept. 11, AlBabtain Food on Sept. 25, Knowledge Tower on Oct. 30 as well as Molan Steel Co. and Rayan Advanced Industrial Co. on Nov. 20.

In September, 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 include the 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 2007 in Riyadh as a closed joined stock company. Its current capital stands at SAR 40 million, divided into 4 million shares.

The firm's main activities comprise the purchase of various plastic and rubber waste from municipal waste and other sources such as petrochemical companies, plastic and rubber producers, and then recycling them to produce plastic granules. 

The company produces nine main products, the most important of which is the processed polyethylene wax using the latest technologies. It markets and sells its various products in several countries in Asia, Europe and Africa, as well as the Saudi market. 

Saudi Top Trading relies on raw materials used in the production process, and obtaining exclusive long-term contracts to purchase the entire quantities of waste from most petrochemical companies, which in turn ensures ongoing supply and production.