NCLE discloses use of IPO proceeds

National Company for Learning & Education (NCLE) announced the use of its initial public offering (IPO) proceeds as of Feb. 29, 2020, which were received at the end of November 2018, according to a bourse filing on Thursday.

The gross proceeds of the IPO recorded SAR 247 million, while net proceeds stood at SAR 232 million after deducting IPO related expenses and fees of around SAR 16.01 million.

The IPO proceeds are allocated as follows:

1- An amount of SAR 59.6 million was allocated to finance and build an educational complex in Buraidah, Qassim.

2- An amount of SAR 51.15 million and SAR 58.6 were allocated to finance and establish Al Qasr educational complexes 1 and 2 in Al Khobar, respectively.

3- A total of SAR 51.99 million was directed to establish Doha Hills Schools Complex in Dhahran, Eastern Province.

NCLE’s general assembly approved, during the meeting held on Dec. 25, 2019, redirecting the use of SAR 109.4 million from the IPO proceeds from financing Al Qasr educational complexes 1 and 2 in Al Khobar, to finance the acquisition of the entire stake of Riyadh-based Al-Ghad School and Al-Khwarizmi Co. for Education in consideration of SAR 66.7 million.

However, the rest of SAR 42.7 million will be used to complete the financing of the project of constructing, furnishing, and operating a school complex in Al Qirawan.

NCLE also stated the reasons of the deviation in the actual use of proceeds as follows:

1- Allocating a total of SAR 59.60 million until the end of February 29, 2020, from SAR 59.60 million to finance and establish an educational complex in Buraidah, Qassim, and only SAR 39.98 million were used to finance the project.

2- Allocating an amount of SAR 45.65 million until the end of February 29, 2020, from SAR 51.99 million to finance and construct Doha Hills Schools Complex in Dhahran, and only SAR 10.29 million were used to finance the project.

In addition, NCLE allocated a total of SAR 66.7 million to acquire the entire stake of Riyadh-based Al-Ghad School and Al-Khwarizmi Co., and only SAR 45 million were used to finance the project as of February 29, 2020.

It also allocated an amount of SAR 42.7 million to complete the financing of constructing, furnishing, and operating a school complex in Al Qirawan, and only SAR 21.10 million were used to finance the project as of February 29, 2020.

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