Qualified investors start subscription to Al Mohafaza for Education’s 1.6M shares today on Nomu

Logo of Al Mohafaza Company for Education

Qualified investors start today, Feb. 28, subscription to 1.6 million shares of Al Mohafaza Company for Education, scheduled to list on the Nomu-Parallel Market. The price range has been set between SAR 14 and SAR 18 per share.

Shares offered for subscription represent 20% of the post-IPO shares, and 23.88% of the company’s capital before the offering.

For More IPOs

The offering process includes increasing the company’s capital from SAR 67 million (6.7 million ordinary shares) to SAR 80 million (8 million shares). The process includes issuing 1.3 million new shares—19.4% of the company’s pre-IPO capital or 16.25% of post-IPO capital. In addition, the company will offer 300,000 shares of the currently issued shares by all existing shareholders, which represents 4.48% of pre-IPO capital (3.75% of post-IPO capital).

The share sale will run until March 7 for qualified investors.

This is the sixth IPO on Nomu during 2024 after Pan Gulf Marketing Co. on Jan. 10, WSM Information Technology Co. on Jan. 25, Al-Modawat Specialized Medical Co. on Jan.  28, Quara Finance Co. on Feb. 4 and Kinan International on Feb. 25.

In December 2023, the company obtained the Capital Market Authority’s (CMA) approval on the offering.

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.

This is provided that they are appointed under terms that enable them to take decisions related to accepting participation in the share offering and investment in Nomu on behalf of clients without prior consent. 

The categories include the Saudi government, any government or international entity approved by the CMA, the Saudi market, 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. This is in addition to investment funds, companies and funds established in the GCC countries.

Investors qualified to participate in the subscription 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, provided they fulfil certain criteria, including the below:

They should have executed transactions in the securities markets worth a minimum of SAR 40 million, and at least 10 deals in each quarter during the past 12 months.

Natural persons should also have a net asset value of at least 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 includes any other persons to be defined by the CMA.

Company Profile

Al Mohafaza for Education Co. was established as a branch of a sole proprietorship in 2004, and was transformed into a closed Saudi joint stock company in 2022.

The company owns and rents land plots, as well as establishes, manages and operates private schools for all levels of public education (pre-university), in addition to managing, operating, and renting its educational, sports and recreational facilities.

The Capital Market Authority (CMA) approved, in December 2023, the application received from the company to register its shares on Nomu.