Al Taqat Mineral’s IPO was fully covered ahead of its debut on parallel market Nomu

The Nomu IPO of scrap-metal recycler Al Taqat Mineral saw strong investor demand, generating an order book of SAR 48 mn, according to a filing to Tadawul. The subscription period for qualified investors wrapped up on Wednesday, 13 March, and was fully covered. Eech investor has the chance to subscribe for a minimum of 10 shares and a maximum of 609k shares.

Background: Al Taqat offering a 20% stake on Nomu, Tadawul’s parallel market, at SAR 18 a piece.

Use of proceeds: The companywill use the IPO proceeds to finance its expansion and growth plans, while SAR 3.4 mn of the proceeds are earmarked to cover the transaction’s expenses, according to the prospectus (pdf).

Lock-up period: The company’s two main shareholders will won’t be able to sell shares for a period of 12 months starting from the date of listing on Nomu.

Meet Al Taqat: Founded in 2017, the Riyadh-based company specializes in metal gathering and recycling, according to its website. Clients include manufacturing heavyweights Sabic and Watania Steel. Al Taqat has also been involved in a handful of notable ventures including the Riyadh train, Aramco Dhahran, and Terminal 5 at King Khalid International Airport in Riyadh.

2023 KPIs in a snapshot: Al Taqat accumulated net losses of SAR 2.8 mn in 1H 2023, while it was in the black in 1H 2022 with a net income of SAR 2.6 mn. Revenues fell 45% y-o-y to SAR 78 mn in 1H 2023.

ADVISORS- Miyar Capital is quarterbacking the transaction as financial advisor, while Alinma Investment is the underwriter, and Mazar is acting as auditor.