KnowledgeNet starts book-building process, qualified investors’ subscription at SAR 35-40 a share

26/02/2023 Argaam Special
Logo ofKnowledge Net Co.

Logo of Knowledge Net Co.


KnowledgeNet Co. started today, Feb. 26, the book-building process and the qualified investors’ subscription to list 700,000 shares, or 20% of capital, on Nomu-Parallel Market at a price range of SAR 35-40 a share.

 

The book-building process for qualified investors will run from Feb. 26 until March 2.

 

The Capital Market Authority (CMA) approved, in December 2022, the company’s application on the planned initial public offering (IPO).

 

KnowledgeNet was established in 2000 as a limited liability company with a capital of SAR 500,000. In 2021, the firm converted into a closed joint-stock company, with its current capital at SAR 35 million.

 

The company is engaged in the wholesale of computers and their accessories (including the sale of printers and inks), software, as well as computer-integrated systems design. Its operations cater for over 45 clients in the financial sector across the Kingdom, UAE, Oman and Egypt.

 

Company Profile

Company

KnowledgeNet Co.

Market

Nomu-Parallel Market

Core Activities

Wholesale of computers and accessories as well as software

Capital

SAR 35 mln

Total Shares

3.5 mln

 

IPO Summary

Issue Percentage

20%

Offered Shares

700,000

Minimum Limit

10 shares

Maximum Limit

174,999 shares

Subscription Period

From Feb. 26 to March 2, 2023

Final Allocation

March 7, 2023

Refund (if any)

March 9, 2023

 

KnowledgeNet's vision is aimed at the localization of the software sector in the region's markets, along with the exporting of the company’s products and services. This is through two main axes, the first of which is its products that constitute three main ventures.

 

The first is the TradeNet integrated order management system that automats the full cycle from order capture to settlement.

 

The second is Datability, which is a specialized, tech-independent portal and data solutions provider, mostly focusing on the banking sector. Lastly is Softmore, which is a cloud development platform designed to build enterprise solutions for KnowledgeNet and other companies.

 

The second axis is the strategic projects, represented in two types, the first of which is projects providing technical consulting or highly experienced and specialized consultants to clients. The second type is partnership projects with the private or public sectors through capital contribution.

 

KnowledgeNet’s Subsidiaries

Subsidiary

Details

Real Estate
KnowledgeNet
Co. Ltd.

  • A 50% owned unit located in Riyadh, with SAR 100,000 in capital.
  • The company’s portfolio comprises the management and
  • leasing of owned or leased residential and non-residential real estate.
  • Operates in 3D printing, software development, artificial intelligence (AI) technology and fintech solutions.
  • PropertyNet Cloud program allows services of registration of lease contracts and other related invoicing services. 

KnowledgeNet for
Business
Services
Co.

  • A wholly-owned unit located in Riyadh, capitalized at SAR 100,000.
  • It operates in systems analysis, design and programming of special software in addition to the biotechnology solutions and senior management consulting services.
  • The company also provides consultancy services to the Saudi Central Bank (SAMA).

Technical
Solutions
Company
for
Financial
Technology
Ltd.

  • A 99.99% owned firm located in Riyadh with SAR 1 million in capital. It operates in system analysis, software development, user interface and application development.
  • The company seeks partnerships with fntech firms and the acquisition of 7-10% stakes using the Softmore license.

Softmore
Co.

  • A free-zone limited liability firm located in Ras Al Khaimah, UAE, with AED 100,000 in capital. It trades in computer supplies, data processing, computer systems and programs.

VeCentral Holdings

Co. Ltd.

  • A private company limited by shares headquartered in Abu Dhabi, UAE, with $1,000 in capital.
  • It is 45% owned by KnowledgeNet. It operates in information technology and special software, in addition to developing programs for startups.
  • It sets up and operates fintech projects, in line with market needs.

Daftar Information Technology Co.

  • A limited liability company, headquartered in Riyadh with SAR 50,000 in capital. It is a 7.5% owned unit.
  • It is a fintech startup, operating under Softmore license.
  • It offers BNPL services to consumers.

PropertyNet
Co.

  • A limited liability company, headquartered in Ras Al Khaimah, UAE, with AED 100,000 in capital. It is a 50%-owned unit.
  • It operates in computer systems and accessories. 

 

This came in addition to the company’s fintech investments via partnerships with entrepreneurs. In its prospectus, KnowledgeNet pointed to obtaining a trademark registration certificate for Blinq Fintech.

 

KnowledgeNet reported total revenue of nearly SAR 30.3 million in H1 2022, while net income reached approximately SAR 4.27 million in a year-earlier period.

 

Revenue by Segment (SAR mln)

Segment

2020

2021

June 2022

Government Payments

26.47

30.38

17.29

Banking Maintenance & Technical Support

12.74

9.03

7.09

Program Licensing to Banking Segment

6.70

9.60

5.94

Total

45.91

49.02

30.31

Total Income

18.9

14.9

9.9

Net Income

7.6

1.6

4.3

Net Profit Margin

17%

3%

14%

 

Revenue from the Saudi market reached nearly SAR 27.4 million over the first six months of 2022, accounting for 90% of total revenue across all markets. Revenue from the UAE operations stood at approximately SAR 2.9 million, representing 10% of total revenue.

 

Revenue by Market

Market

2020

2021

June 2022

Saudi Arabia

85%

93%

90%

External Markets

15%

7%

10%

 

For More IPOs

 

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.