First Avenue shares jump 30% on Nomu debut

First Avenue Real Estate Development’s shares climbed 30% on their first day of trading on Tadawul’s parallel market Nomu yesterday, closing at SAR 7.8 apiece, according to market data. The shares hit the maximum of the ±30% band within which they are allowed to trade on the first three days during intraday trading. Starting from the fourth day of trading on the Tadawul, the band will be capped at no more than 10% up or down before circuit breakers kick in.

REFRESHER- The Riyadh-based real estate developer took to market 8.7% stake at SAR 6 apiece. First Avenue priced its IPO at the top end of the range after its offering was 7.4x oversubscribed. The pricing means the company raised SAR 98.5 mn in proceeds from the sale and gave it a market cap of SAR 1.1 bn at listing.

ADVISORS- Al Khair Capital acted as both financial advisor and subscription manager, while Khalijoon Law Firm provided counsel. RSM United Accountants audited the company’s financials. Meanwhile Al Rajhi Capital, AlBilad Capital, Riyad Capital, SNB Capital, and other institutions acted as receiving agents.

IN OTHER IPO NEWS-

The institutional subscription period for Naqawa for Information Technology’s (Purity Tech) Nomu IPO kicked off yesterday, and runs until next Tuesday, 22 October, according to Argaam. Investors are allowed to subscribe to a minimum of 100 shares and a maximum of 749.9k shares.

REMEMBER- Purity Tech is taking a 20% stake to market, at a price range of SAR 6.0-8.0 apiece. The stake is equivalent to 3 mn ordinary shares. Purity Tech lined up Capital Market Authority approval for the move back in June.

What’s next: The final allocation is slated for Sunday, 27 October, with excess funds set to be refunded by Tuesday, 29 October.

ADVISORS- Yaqeen Capital is quarterbacking the transaction as financial advisor and lead manager. Receiving agents include Al Rajhi Capital, Albilad Capital, Riyad Capital, SNB Capital, Alistithmar Capital, Alinma Investment, AlJazira Capital, ANB Capital, SAB Invest, Derayah Financial, BSF Capital, and Alkhabeer Capital.