Zahrat Al Waha’s IPO to boost market share: Saudi Fransi Cap

Zahrat Al Waha for Trading Co.’s initial public offering (IPO) on the Saudi Stock Exchange (Tadawul) will help boost its presence and market share locally and overseas, said Waleed Fatani, CEO of Saudi Fransi Capital, the financial advisor, lead manager, and book runner for the offering.

Going public will help strengthen the company’s ties with countries in the GCC and MENA region and boost business activities, he added.

Founded in 2003, Riyadh-based Zahrat Al Waha is engaged in factory building and maintenance, manufacturing industries, building and construction, money services, information technology, gas and water, social responsibility, agriculture and fishing as well as mining and petrol.

The company plans to float 4.5 million shares, or 30 percent of capital, during the period from Aug. 13 to Aug. 20.

A total of 3.6 million shares, or 80 percent of the offering, will be sold to institutional investors. The remaining 900,000 shares will be offered to retail investors.

Zahrat Al Waha reported net earnings of SAR 53.2 million in 2016, compared with SAR 53.8 million in 2015.