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Nomu-listed Saudi Azm Communications and IT is gearing up for a move to Tadawul’s main market, it said in a regulatory filing to the exchange. The Riyadh-based company has appointed AlRajhi Capital as financial advisor on the transaction.
About Saudi Azm: The IT services provider was founded in 2017 and offers services including operational support, system integration, management consulting services, and web development.
It does a lot of government business, with clients including Neom, Misk Foundation, Riyad Bank, along with a number of ministries, according to its website.
A snapshot of its 2023 results: Saudi Azm’s net income grew 25.5% y-o-y in 2023 to SAR 24 mn, according to its annual report (pdf). Revenues were up 24.8% y-o-y to SAR 190.4 mn over the same period. Additionally, the company’s project portfolio grew 45% y-o-y last year, which was accompanied by a 70% y-o-y increase in the number of new clients, and an 80% partners retention rate.
Azm has what it takes to join the heavyweights league: The company has market cap of SAR 1.07 bn, and has 52.9% of its shares floored on Nomu, satisfying some of the minimum requirements to upgrade to the main market, which include a capitalization of SAR 300 mn and floating a 30% stake at the minimum. Issuers on main market Tadawul are required to have at least 200 public shareholders at the time of listing, and a minimum of three years worth of audited financial statements.
Saudi Azm’s network of affiliates includes Itmam Consultancy, Azm Fintech, Azm Digital, Business Innovation Mine, Future Communications, Pega Saudi Azm, Azm X and Aqarek, according to its latest results (pdf). Although its website suggests are also among its affiliate companies, it is unclear whether all of them are subsidiaries of Saudi Azm.
Market reax: The company’s Nomu shares rose 11.6% to SAR 17.90 a piece at market close yesterday.
