Sumou Real Estate kicks off IPO on Nomu today

The initial public offering (IPO) of Sumou Real Estate Company on Nomu Parallel Market will start today, Feb. 16 and run until March 19 at SAR 24 per share.

In Dec. 2019, the Capital Market Authority (CMA), Saudi Arabia’s market regulator, approved the listing of a 30% stake, or 7.5 million shares of Sumou Real Estate Co. on the Nomu Parallel Market.

Read more: CMA approves Sumou Real Estate’s IPO on Nomu

The share sales marks the 12th public offering on Nomu, since market launch in February 2017.

A total of 5 companies moved from the Nomu Parallel Market to the main market in 2019, reducing the number of firms to 5.

The IPO will be confined to qualified investors, who will conduct their own due diligence and hire an authorized financial advisor if necessary, as the following:

- Authorized persons licensed to deal in securities as a principal, in compliance with the provisions set forth in CMA’s prudential rules, when submitting an application form to the authority;

- Clients of a person authorized by the CMA to conduct managing activities with the provisions and restrictions set forth in the book-building instructions;

- Government entities, any supranational authority recognized by the CMA, the Exchange, or any other stock exchange recognized by the CMA, or the Depositary Centre;

- Government-owned companies, whether investing directly or through a portfolio manager;

- GCC companies, and GCC funds if allowed according to the terms and conditions of such funds.

- Public and private funds that invest in securities listed on the Saudi Stock Exchange (Tadawul);

- Legal persons allowed to open an investment account in the Kingdom, and an account with the Depositary Centre;

- Natural persons allowed to open an investment account in the Kingdom, and an account with the Depositary Centre and fulfill any of the following criteria:

1) he/she has conducted transactions in security markets of no less than SAR 40 million in total, and no less than 10 transactions in each quarter in the last 12 months; 

2) he/she has net assets no less than SAR 5 million;

3) he/she works or has previously worked for at least 3 years in the financial sector;

4) he/she holds the General Securities Qualification Certificate which is recognized by the CMA;

5) he/she holds a professional certificate that is related to securities business and accredited by an internationally recognized entity;

6) Any other persons prescribed by the CMA.

According to the prospectus, the IPO minimum limit is 10 shares while the maximum limit is 1.25 million shares.

The remaining amount of subscribed shares will be allotted on pro rata basis.

About the company:

Somou Real Estate Co., which is 98% owned by Sumou Holding Group, manages and develops real estate projects since 2008, with a capital of SAR 250 million.

Somou Real Estate works in the field of implementing and managing real estate developments and investments in Saudi Arabia, such as commercial centers, housing complexes, residential units, and infrastructure for industrial and commercial establishments, economic cities, and free zones.

Somou’s projects:

*The company owns 17.5% in the project

Somou was able to develop, sell, and invest lands and properties, as well as developing the infrastructure of diverse projects in addition to a number of current projects, as per the following table:

Sumou Holding is the majority shareholder in Somou Real Estate after the IPO by 68.6%.

*Owns 3.47% in Sumou Real Estate after IPO indirectly through Sumou Holding and Sumou Society.