SACO becomes second company to list on Tadawul this year

Saudi Company for Tools and Hardware (SACO) began trading its shares on the Saudi Stock Exchange Tuesday under the code 4008, marking the second listing on the bourse this year. 

The stock fluctuation limit will stand at 10 percent, according to a recent statement published on Tadawul's website.

The new entry brings the number of listed firms in the retail sector to 15 and the total number of listed companies on the exchange to 170, including suspended shares.

The move follows the hardware retailer’s initial public offering (IPO) held last month, in which 30 percent of capital, or 7.2 million shares were sold, individually priced at SAR 70 each.

Data published by Argaam also showed that retail investors subscribed for 2.88 million shares, or 40 percent of the floated shares.  The share sale was 620 percent oversubscribed by 1.08 million investors for SAR 1.25 billion. Three shares were allocated to each individual investor.

SACO was incorporated in 1984 as a limited liability company with SAR 10 million in capital.

The company’s share capital was increased to SAR 240 million from SAR 16 million through the capitalization of SAR 224 million in retained earnings. In 2011, SACO was converted into a Saudi joint stock company.

SACO is one of the largest companies providing home improvement products in Saudi Arabia. It operates 23 stores in 12 cities kingdom-wide, including three SACO World superstores.

Major shareholders in the retail and wholesale tools superstore are Al Hamidi Contracting Establishment Co. (33.25 percent), Abrar International Holding Co. and Abdul Rahman Hassan Abbas Sharbatly (17.85 percent each).