Qualified investors start subscription to WSM's 390,000 shares today

Logo of WSM for Information Technology Co.

Qualified investors started today, Jan. 25, subscription to 390,000 shares of WSM for Information Technology Co. in its initial public offering (IPO) on Nomu-Parallel Market.

The offered shares represent 20% of the company's SAR 19.5 million capital, divided into 1.95 million shares.

The subscription period for qualified investors will run for six business days until Feb. 1.

This is the second IPO on Nomu this year, after Pan Gulf Marketing Co.’s offering which took place on Jan. 10.

The Capital Market Authority (CMA) approved, in September 2023, WSM Information Technology’s request to register and offer its shares on Nomu.

The subscription is limited to qualified investors, namely capital market institutions authorized to act on their own account. This is in addition to clients of capital market institutions authorized to carry out management operations, provided they are appointed under terms enabling for decision-making related to accepting participation in the share offering and investment in Nomu on behalf of clients without prior consent. 

The Saudi government, any government body or 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) are qualified investors.

This is besides companies owned by the government, directly or through a portfolio managed by a market institution authorized to practice management operations, in addition to companies and funds established in the GCC countries.

Investors qualified to participate in the subscription also include non-resident foreigners who are allowed to invest in Nomu, qualified foreign financial institutions and any legal person entitled to open investment accounts inside the Kingdom and with Edaa.

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

Qualified investors should have executed transactions in the securities markets worth a total of no less than SAR 40 million. They also must have carried out at least 10 deals in each quarter during the past 12 months.

They should also have a net asset value of no less than SAR 5 million and be working or have worked for at least three years in the financial sector. This is paired with holding a general CMA-approved certificate in securities dealing and a professional certificate in the field of securities business, approved by an internationally-recognized body.

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

Company Profile

Established in 2014 as a closed joint stock company in Riyadh, WSM Information Technology operates in the provision of integrated digital solutions and services specifically tailored for a number of fields through various business models.

**Post-IPO, the direct ownership of shareholders Al-Qahtani and WSM Al-Walaa Business Services will decrease to less than 5%, meaning they will no longer be major shareholders.