Thob Al-Aseel eyes SAR 500 mln in sales after Aljedaie merger

Thob Al-Aseel Co. is expected make SAR 500 million in sales and SAR 110 million in profit after merging with Aljedaie Fabrics, chairman Faisal Al-Jedaie told Argaam in an interview.

The company has a 25 percent stake of the readymade clothes market, with a strong presence in the UAE, Egypt, Libya, Yemen, Jordan and Qatar, he added.

The company is seeking to list shares on the Saudi stock exchange (Tadawul), two years after a debut on Nomu-Parallel market, in line with the Saudi Vision 2030.

Listing shares on the parallel market will help the company apply the highest corporate governance standards, he said.

Thob Al-Aseel started its initial public offering (IPO) on the Nomu-Parallel Market on Sunday, May 7. The IPO will run until Thursday, May 18.

The company currently enjoys strong cash flows and has no debt obligations, he said adding that he expected to see an overwhelming response to the issuance.

The company seeks to introduce new products and upgrade the existing production lines to enhance market share. It also plans to open new stores across the Kingdom.

He said the company’s move to hike capital from SAR 50 million to SAR 150 million, by capitalizing SAR 100 million, was aimed at boosting its market share and introducing new products, in line with its expansionary plans.

Shareholders’ equity exceeds SAR 500 million, while retained earnings reached SAR 160 million.

Last April, Thob Al-Aseel obtained the CMA’s approval to increase the number of offered shares from 1 million to 3 million, following its move to hike capital from SAR 50 million to SAR 150 million, by capitalizing SAR 100 million.

Earlier this year, the clothing manufacturer merged with Al-Jedaie Group. 

Thob Al-Aseel, which was set up 30 years ago, was converted into a closed shareholding company in Sept. 2016 with a SAR 50 million in capital. It manufactures ready-made, wholesale and retail garments.