Qualified investors start subscription to 600,000 Bena Steel shares today

Logo of  Bena Steel Industries Co.

Qualified investors start today, Feb. 26, subscription to 600,000 shares, or 12% of Bena Steel Industries Co. share capital, on Nomu-Parallel Market. The initial public offering (IPO) price range was between SAR 50-52 per share.

The subscription will run for five days until March 2. 

Share subscription for Knowledge Net Co. also starts today on Nomu, following WAJA Co. IPO that took place on Feb. 12.

Nomu saw 19 IPOs last year, including Gas Arabian Services Co. , Raoom Trading Co., Al-Jouf Mineral Water Bottling Co., Arabian International Healthcare Holding Co. (Tibbiyah), Arabian Food & Dairy Factories Co. (FADECO), Ladun Investment Co., Amwaj International Co., Saudi Networkers Services Co., International Human Resources Co. (IHR), Naba Alsaha Medical Services Co., Arabian Plastic Industrial Co. (APICO), AlBabtain Food, Knowledge Tower as well as Molan Steel Co., Saudi Top Trading Co., Leen Alkheir Trading Co., Nofoth Food Products and Alwaha REIT Fund. 

On Nov. 2, 2022, 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 who are 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 no 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 no 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 includes any other persons to be defined by the CMA.

Company Profile:

Headquartered in Dammam, Bena was incorporated as a closed joint-stock company. It started operations as a branch in 1992.

The company's activities, as in its commercial register, are the manufacture of sheets, plates, strip coils, bars, skewers, corners, wires and sections of all kinds. This is in addition to the manufacture of pipes and hollow sections of iron and steel, the manufacture and installation of prefabricated steel constructions for refinery and refining units, and the manufacture of steel cables and metal strips.

The company's current actual activity is coil services, structural steel fabrication, steel tubes, presses and trolleys.

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