Qualified investors start subscription to 880,000 shares of Saudi Top Trading today

27/11/2022 Argaam Special
Logo of Saudi Top Trading Co.

Logo of Saudi Top Trading Co.


Qualified investors start today, Nov. 27, subscription to 880,000 shares, or 22% of Saudi Top Trading Co.’s share capital, on Nomu-Parallel Market, with an IPO price of SAR 133 per share, determined though a book-building process.

 

The subscription period will run five days until Dec. 1.

 

Saudi Top Trading is the 16th in Nomu this year, following the listing of Gas Arabian Services Co. on Jan. 23, Raoom Trading Co. on Jan. 30, Al-Jouf Mineral Water Bottling Co. on Feb. 6, Arabian International Healthcare Holding Co. (Tibbiyah) on Feb. 15, Arabian Food & Dairy Factories Co. (FADECO) on May 11, Ladun Investment Co. and Amwaj International Co. on May 22, Saudi Networkers Services Co. on July 24, International Human Resources Co. (IHR) on July 31, Naba Alsaha Medical Services Co. on Aug. 8, Arabian Plastic Industrial Co. (APICO) on Sept. 11, AlBabtain Food on Sept. 25, Knowledge Tower on Oct. 30 as well as Molan Steel Co. and Rayan Advanced Industrial Co. on Nov. 20.

 

In September, 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 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 not 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 not 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 also includes any other persons to be defined by the CMA.

 

Company Profile:

 

The company was established in 2007 in Riyadh as a closed joined stock company. Its current capital stands at SAR 40 million, divided into 4 million shares.

 

The firm's main activities comprise the purchase of various plastic and rubber waste from municipal waste and other sources such as petrochemical companies, plastic and rubber producers, and then recycling them to produce plastic granules. 

 

The company produces nine main products, the most important of which is the processed polyethylene wax using the latest technologies. It markets and sells its various products in several countries in Asia, Europe and Africa, as well as the Saudi market. 

 

Saudi Top Trading relies on raw materials used in the production process, and obtaining exclusive long-term contracts to purchase the entire quantities of waste from most petrochemical companies, which in turn ensures ongoing supply and production.

 

Production Capacity and Raw Material Cost (SAR mln/’000 tons)

Item

2020

2021

June  2022

Maximum Production Capacity

51.5

51.5

25.8

Actual Production Capacity

38.6

48.3

23.2

Efficient Use of Production Capacity

75 %

93.9 %

90.2 %

Cost of Raw Material (SAR mln)

68.3

143.7

63.3

Total Cost of Sales (SAR mln)

77.1

156

71.3

Cost of Raw Material to Cost of Sales

88.5 %

92 %

89 %

 

Company Profile

Company

Saudi Top Trading Co.

Market

Nomu-Parallel Market

Core Activities

Recycling of petrochemical, plastic and rubber waste, along with the production of processed polyethylene wax

Capital

SAR 40 mln

 

IPO Summary

Issue Percentage

22%

Offered Shares

880,000

Minimum Limit

10 shares

Maximum Limit

199,990 shares

Subscription Period

Nov. 27 to Dec. 1, 2022

Final Allocation

Dec. 6, 2022

Refund (if any)

Dec. 8, 2022

 

Company Shareholders

Shareholders

Pre-IPO

Post-IPO

Number of Shares

(‘000 shares)

Ownership (%)

Number of Shares

(‘000 shares)

Ownership (%)

Abdullah Mohammed Obaid Alajmi

3680

92.00%

2800

70.00%

Nouf Moneif Monahi Algahtani

160

4.00%

160

4.00%

Mohammed Abdullah Mohammed Alajmi

160

4.00%

160

4.00%

Qualified investors

--

--

880

22%

Total

4000

100%

4000

100%

 

Additional Information

Financial Advisor 

Watheeq Financial Services

Lead Manager

Alinma Investment

Receiving banks

Alinma Investment - Al Rajhi Bank

 
 

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