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Digital Research Company (DRC) is taking a 22.5% stake ( 337.5k shares) to the Nomu parallel market, it said in a prospectus (pdf). The market researcher lined up Capital Market Authority approval for the move in September.
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More details on the offering: The 337.5k shares on offer are composed of 150k existing shares and 187.5k newly-issued shares. Existing shares included in the offering will be primarily pooled from the six majority shareholders who will be selling down their collective stake to 61.9% from 77.2%.
Use of proceeds: SAR 2.6 mn of proceeds will go towards covering IPO-related expenses. Net proceeds will be partly distributed to selling shareholders and partly retained by the firm. The firm will commit its share from the offering’s proceeds towards financing the procurement of SAR 15 mn in operational assets. The company will deploy its own liquidity to assets to fill funding gaps If the company’s allocation of offering proceeds fails to meet the funding target. Surplus proceeds will be diverted towards bolstering working capital.
Lock-up period: Major shareholders will be restricted from executing any transactions on their shares for 12 months from the first day of trading.
IPO timeline: Qualified investors can book shares between Monday, 25 November and Sunday, 1 December with a minimum subscription limit of 10 shares and a maximum of 84,360 shares. The final allocation is slated for Wednesday, 4 December, and excess funds will be refunded by Sunday, 8 December. The first day of trading will be announced once all regulatory requirements have been met.
Earnings snapshot: DRC reported a net income of SAR 3.2 mn in 1H 2024, down 6.5% y-o-y according to Argaam. The company logged SAR 27.7 mn in revenues during the same period, marking a 22.6% increase. The company’s net income came in at SAR 10.5 mn in FY 2023, while revenues were SAR 54.3 mn, according to audited financials published in the prospectus.
About DRC: Established in 2014, the company specializes in market research, data analytics, and consulting.
ADVISORS- Value Capital is quarterbacking the transaction as financial advisor and bookrunner. Receiving agents include SNB Capital, Al Rajhi Capital, BSF Capital, Alnima Investment, Riyad Capital, Aljazira Capital, Alistithmar Capital, Albilad Capital, ANB Capital, SAB Invest, Derayah, Yaqeen Capital, Alkhabeer Capital, and Sahm Capital.
