Riyadh Cables gets CMA nod to float 33 mln shares

Logo of Riyadh Cables Group

Riyadh Cables Group obtained the approval of the Capital Market Authority (CMA) to register and float 33 million shares, or 22% of its capital reaching 150 million shares, in an initial public offering (IPO), according to the authority's website.

The company's prospectus will be published within sufficient time prior to the start of the subscription period.

The CMA's approval is valid for six months and will be deemed cancelled if the offering and listing of the company's shares are not completed within this period.

Established in 1984 in Riyadh Second Industrial City, Riyadh Cables has factories in Saudi Arabia, the UAE, and Iraq. The firm produces all types of low, medium and high-pressure cables, in addition to control cables and electrical wires.

The company owns four subsidiaries, Saudi Modern Company for Metals Cables & Plastic Industry, Saudi Modern Company for Specialized Electrical Cables & Wires Industry, Saudi Modern Company for Telephone Cable, and Saudi Modern Company for Cables Industry.

The company is working with Riyad Capital and Himmah Capital on the proposed listing, sources told Bloomberg, adding that the IPO would raise nearly SAR 1.5 billion in proceeds.

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