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Yaqeen Capital has priced its IPO at SAR 40 per share, according to a filing to Tadawul. That values the company at SAR 600 mn, by our math. The Riyadh-based advisor, brokerage house, and asset manager is inching closer to floating 3 mn ordinary shares — good for a 20% stake — on Tadawul’s parallel market, Nomu.
The latest results in a nutshell: The company’s net income grew rose sharply to SAR 36.5 mn in 2023 from SAR 2.4 mn a year before, according to its latest earnings release (pdf). Improved profitability came as the company booked SAR 31.8 mn in other income related to the sale-and-lease-back of its “land and building” as well as a sharp drop in operating expenses. Yaqeen’s revenues for the year (SAR 77.8 mn) reflect a dip in contribution from advisory services as well as in management fees from mutual funds it runs.
Use of Proceeds: The selling shareholder, Falcom Holding Company, will take home all of the net proceeds from the transaction after covering SAR 5 mn in listing expenses.
The timeline:
- Qualified Investors can place their orders from Sunday, 5 May 2024 through Monday, 12 May, with each investor allowed to buy a minimum of 10 shares and a maximum of 750k shares;
- The final share allocation is slated for Wednesday, 15 May;
- Excess funds, if any, will be returned no later than Tuesday, 21 May.
Shareholders: The asset manager has two large, related shareholders— Falcom Holding and its 100% owned subsidiary, Falcom Yaqeen Investment Company. Falcom Holding will hold a 40% stake in Yaqeen Capital after the listing, down from 60%. Falcom owns other non-bank financial services companies.
Lock-up period: Substantial shareholders will not be able to execute any transactions on their shares for a period of 12 months starting from the first trading day.
SOUND SMART- Yaqeen is listing on Nomu — the parallel market on which it is a top advisor to other companies filing to go public.
ADVISORS- Alinma Investment is quarterbacking the transaction as the sole lead manager and financial advisor. Receiving agents include SNB Capital, Riyadh Capital, Saudi Fransi Capital, AlJazira Capital, Albilad Capital, Yaqeen Capital, ANB Capital, Alistithmar Capital, Derayah, and Alrajhi Capital.
