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Thobe-maker and clothes retailer Al Fakhera Men’s Tailoring is guiding on a price range of SAR 5-6 per share for its Nomu IPO of a 20% stake, its financial advisor Yaqeen Capital said in a disclosure to Tadawul.
Proceeds + market cap: The pricing could see Al Fakhera raise up to SAR 36 mn in proceeds, according to EnterpriseAM calculations. The funds will be earmarked to buy new assets and finance the company’s working capital, after covering costs related to the offering, with no part allocated to shareholders. At the top of the range, the indicative price gives the firm a market cap of SAR 180 mn at listing.
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What’s next? Limited to qualified investors, the bookbuilding process will run from Sunday, 3 November to Monday, 11 November. Investors will be able to book up to 1.8 mn shares each, with the lower limit set at 100 shares. The final allocation is slated for Thursday, 14 November and excess funds will be refunded by Monday, 18 November.
Post-IPO structure + lockup: The company’s substantial shareholders, Suleiman Hammad Al Yahya and the Sulaiman Al Hamad Al Yahya Islamic Charitable Endowment, will see their combined ownership diluted from a 95.0% stake to 79.2% on listing. They will not be able to sell down their positions for a 12-month period from the first day of trading. Minority shareholders will see their positions reduced on a pro rata basis.
About Al Fakhera: Founded in 1976, the company operates over 100 branches across the Kingdom, according to its LinkedIn. Al Fakhera specializes in the design and crafting of the traditional Saudi thobe, offering tailoring services catered to men of all ages. It also owns and runs the largest detailing factory in the region.
ADVISORS- Yaqeen Capital is quarterbacking the transaction as financial advisor, lead manager and underwriter, with Monsfoon providing legal counsel to the issuer and RSM stepping in as auditor. Receiving agents include Yaqeen Capital, Al Rajhi Capital, AlBilad Capital, Riyadh Capital and Al Ahli Capital, Istithmar Capital and Alinma Investment, among others.
