RIYADH: Saudi Arabia’s Capital Market Authority has given its approval for initial public offerings by two companies seeking to join the Kingdom’s Parallel market.
Leen Alkhair Trading Co. has received approval to register and offer 23.5 percent of its total capital, equivalent to 958,750 shares, the Saudi market regulator said in a statement.
Leen Alkhair specializes in marketing, packaging, distributing, and importing fresh vegetables and fruits and has 768 clients and 450 refrigerated cars. It also imports and markets a wide range of agricultural and food products utilizing the latest international technologies, as well as ensuring the efficient use of natural resources.
Meanwhile, Meshkati Trading Co. was also approved by the regulator to offer 900,000 shares, which represents 25 percent of the company’s capital.
Established in 2009, Meshkati Trading is an integrated national lighting solutions provider that utilizes the latest technology to provide lighting systems to its clients.
Meshkati said its main goal is to become one of Saudi’s leading suppliers of safe electrical products and all related products. Through its various branches, it aims to consolidate and strengthen its position while also delivering modern, high-quality products and services.
Shares of these companies will only be available for trading to qualified investors. In advance of the offering, prospectuses will be issued to investors, the statement said.
The approval of the applications is valid for six months from the date the CMA board approves it. If the listing of the companies’ shares does not take place within this time frame, the approval will be deemed revoked.
The Saudi stock exchange Tadawul Group announced in March that it has received more than 70 listing applications for both the main index TASI, as well as the parallel index Nomu.
The Saudi Stock Exchange has recorded 17 initial share sales in the first half of the year, generating proceeds amounting to $5.07 billion.
The parallel Nomu market accounted for nine listings worth $649 million.
This number is up from 15 offerings during the whole of 2021, which raised almost $5 billion.
As of Tuesday, Sept. 27, TASI, the main market, has listed 10 IPOs, while Nomu, the parallel market, has listed 11 IPOs.