Subscription to Naqawa’s 3M shares starts today on Nomu

Logo of Naqawa for Information Technology Co.

Qualified investors started today, Oct. 16, subscribing to 3 million shares of Naqawa for Information Technology Co., which is set to be listed on the Nomu-Parallel Market. The offering range has been set between SAR 6 and SAR 8 apiece.

The shares on offer represent 20% of the company's post-IPO capital of SAR 15 million, which is divided into 15 million shares with a par value of SAR 1 each.

The shares offered represent 25% of its current capital, which amounts to SAR 12 million, divided into 12 million shares.

For More IPOs

The subscription period will run for five days until Oct. 22.

This is the 18th IPO on Nomu this year, as the offering of Al-Hokail Academy Specialized Digital Polyclinics Co. was cancelled, and Kinan International for Real Estate Development Co. was delayed.

The Capital Market Authority (CMA) approved, in June 2024, the company’s request to register and float its shares on Nomu.

The subscription is limited to certain categories of investors, including capital market institutions authorized to act on their own accounts as well as clients of capital market institutions authorized to carry out management operations.

This is provided that they are appointed under terms that enable them to take decisions related to accepting participation in the share offering and investment in Nomu on behalf of clients without prior consent. 

The categories include the Saudi government, any government or international entity approved by the CMA, the Saudi market, 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 person authorized to practice management operations. This is in addition to investment funds, companies, and funds established in the GCC countries.

They also include qualified foreign financial institutions and any legal person entitled to open investment accounts inside the Kingdom and with Edaa.

Natural persons are allowed to open investment accounts inside the Kingdom and with Edaa, provided they fulfill certain criteria, including the below:

They should have executed transactions in the securities markets worth a minimum of SAR 40 million and at least 10 deals in each quarter during the past 12 months.

Natural persons should also have a net asset value of at least 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 includes any other persons as defined by the CMA.

Company Profile

Established in May 2016, the Riyadh-based company provides integrated tech solutions, a wide range of software development services, as well as managed and cloud services. In addition, it establishes and manages data centers and end-user devices, as well as investing in venture capital.

According to the commercial register, the company's activities include, as stated in the prospectus, investments for designated units, including venture capital firms and investment clubs. This is in addition to the organization of exhibitions and conferences, as well as the development of operating systems, systems analysis, custom software design, and web hosting services. It also operates in the sale and maintenance of computers and their accessories.

The company operates in five main segments: software development and services, cloud services, managed services, data center establishment and management services, and end-user devices.

The end-user devices segment contributes the largest share of the company's revenue. The segment's revenue increased from SAR 21.08 million at the end of the fiscal year ended June 30, 2022, to over SAR 32.22 million by the end of the 2023 fiscal year, marking a growth rate of approximately 53%.

Additionally, the revenues of the software development and services and cloud services segments grew by 89% and 61%, respectively, over the same period. The following table illustrates the company's revenues for the fiscal years 2022 and 2023 as of June 30: