Canadian Medical Center debuts on Nomu today as sixth direct listing

Logo of Canadian Medical Center

Shares of Canadian Medical Center (CMC) will be directly listed and traded on Nomu Parallel Market, today, Aug. 2, with the symbol 9518 and ISIN Code SA15BG54KN10.

Daily price fluctuation limits will be set at ± 30% while static price fluctuation limits will be ±10%.

On June 28, the Capital Market Authority (CMA) approved the company’s request to register its shares for the purpose of direct listing in the parallel market, provided that trading of the shares will be confined to qualified investors.

The company published the registration form of its direct listing on Nomu on July 1 and set the price guidance at SAR 39 per share.

This will be the sixth direct listing on Nomu after the listings of Riyadh Cement in September 2020, Watani Iron Steel in February 2021, Fesh Fash Snack Food Production Co. (May 2021), Mohammed Hassan Al Naqool Sons (June 2021), and National Fertilizer Co. (NAFCO) last week. It will also be the fifth listing on the parallel market this year.

Company Profile

The medical center was established as a branch of a sole proprietorship in 2008, and was transformed into a limited liability firm in 2016, with a capital of SAR 77 million.

In 2019, CMC merged with Advanced Medical Clinics Co. after which the latter become CMC's Al Khobar branch.

The company carries out its main activities through its main office in Dammam. It does not have any other commercial activity or assets abroad.

The company's business falls under two main segments, namely, the medical centers business, which is the management of hospitals and health centers, trade in hospital tools and equipment and ambulances, and the implementation of contracts for medical clinics.

CMC owns three medical centers in Dammam, Al Khobar and Abqaiq, where it provides health services through clinics covering various specialties.

The company leased the building of the Canadian Center - Abqaiq branch, but has not opened it officially yet. The branch is expected to be inaugurated in early H2 2021.

Canadian Medical Center is one of the leading medical companies in providing healthcare to the oil and gas sector, as it has a number of contracts with entities operating in the Kingdom, most of which are drilling and contracting companies in the oil and gas sector contracted with Saudi Aramco. It provides medical services within the sites of the projects in the Kingdom and some Gulf countries.

Khaled M. Farhan Al-Dosari and Khalifa Abdullatif Abdullah Al Molhem are the company's largest shareholders before the direct listing.

Types of qualified investors:

- Persons authorized to act on their own account.

- Retail clients who are authorized to carry out management operations, provided that such authorized persons are appointed with the 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 client, without the need to obtain prior consent from the client.

- The Saudi government, any governmental body, any international entity approved by CMA or the Saudi market, or any other financial market recognized by CMA or the Securities Depository Center.

- Companies that are owned by the government, directly or through private portfolio manager.

- Companies and funds established in the GCC countries.

- Investment funds.

- Non-resident foreigners who are allowed to invest in the parallel market and who fulfill the requirements as stipulated in the guide of non-resident foreigners’ investments in the parallel market.

- Qualified foreign financial institutions.

- Any legal persons who have the right to open investment accounts inside the Kingdom, and accounts at the Securities Depository Center.

- Natural persons who can open investment accounts inside the Kingdom and accounts at the Securities Depository Center, and who fulfill the following criteria:

1) To have executed deals in securities markets, with a total value of not less than SAR 40 million, and not less than 10 deals in each quarter during the past 12 months.

2) Net assets value is not less than SAR 5 million.

3) To be working or has worked for at least 3 years in the financial sector.

4)  To hold a general certificate in securities dealing, approved by CMA.

5) To hold a professional certificate in the field of securities business, approved by an internationally recognized body.

- Any other persons to be determined by CMA.

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