Qualified investors start subscription to 720,000 Riyal Motors shares today

Logo of Riyal Investment and Development Co.

Qualified investors start today, Oct. 1, subscription to 720,000 shares, or 9% of Riyal Investment & Development Co.’s (Riyal Motors) 80 million share capital (SAR 8 million) on Nomu-Parallel Market. 

The subscription period will run for five days until Oct. 5.  

Following Riyal Motors' IPO today, the number of offerings on Nomu will reach 20 in 2023. 

Nomu saw 19 IPOs last year, including Gas Arabian Services Co., Raoom Trading Co., Al-Jouf Mineral Water Bottling Co., Arabian International Healthcare Holding Co. (Tibbiyah), Arabian Food & Dairy Factories Co. (FADECO), Ladun Investment Co., Amwaj International Co., Saudi Networkers Services Co. (SNS), International Human Resources Co. (IHR), Naba Alsaha Medical Services Co., Arabian Plastic Industrial Co. (APICO), Abdulaziz and Mansour Ibrahim Albabtin Co. (AlBabtain Food), Knowledge Tower Trading Co., Molan Steel Co., Saudi Top Trading Co., Leen Alkhair Trading Co., Nofoth Food Products Co. and Alwaha REIT Fund.

In June, the Capital Market Authority (CMA) approved Riyal Motor’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. It also includes clients of capital market institutions authorized to carry out management operations, provided they are appointed under terms that enable them to take decisions related to accepting 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 they fulfil certain criteria.

They should have executed deals in the securities markets, at a total value of no 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 no 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 as a sole proprietorship in 1993 and was transformed into a Saudi closed joint stock company in 2002, headquartered in Dammam.

According to its commercial register, the firm carries out wholesale and retail of new private cars, including ambulances, minibuses, and four-wheel drive vehicles.

The company's main activity is lease and rental of cars and vehicles services for large institutions and companies. The company also provides multiple options in rental services, including renting vehicles without a driver and renting vehicles with a driver, in addition to selling new cars as well as used cars after the end of their operational lifespan.

*Aldukheil Financial Group will own 0.19% in the company after the IPO.