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Al Battal Factory for Chemical Industries Company is taking a 22.3% stake to the Nomu parallel market, it said in a prospectus (pdf). The 670k offered shares are split equally between newly issued shares and shares to be sold by existing shareholders. The chemicals manufacturing company lined up Capital Market Authority approval for the move in September.
Use of proceeds: After deducting SAR 2.8 mn in IPO-related expenses, 50% of the proceeds will go to selling shareholders. The remaining funds will be directed toward financing the company’s working capital.
Ownership structure + lockup: The IPO will see Al Battal Investment’s stake in the company reduced to 44%, down from 55.1%, while indirect shareholder Bassam bin Mohammed Al Dosari will see his 10% stake decrease to 8%. Substantial shareholders will be restricted from trading their shares for 12 months from the first trading day.
IPO timeline: Qualified investors can book shares between 15 and 19 December, with a minimum subscription limit of 10 shares and a maximum of 166.7k shares per investor. The final allocation of shares is slated for 24 December.
Earnings snapshot: Al Battal reported a net income of SAR 4.5 mn in 1H 2024, up from SAR 2.5 mn in the same period last year. The company logged SAR 36.6 mn in revenues during the same period, up from SAR 24.1 mn. Al Battal’s net income came in at SAR 11.9 mn in FY 2023, while revenues were SAR 72.3 mn.
About Al Battal Factory: Al Battal Factory specializes in manufacturing cellulose ether products, including polyanionic cellulose, carboxymethyl cellulose, salt auxiliary products, and thermal coating solutions.
ADVISORS– Yaqeen Capital is quarterbacking the transaction as financial advisor and lead manager with Moore serving as the auditor. Receiving agents include Alistithmar Capital, Alinma Investment, SNB Capital, AlJazira Capital, Riyad Capital, ANB Capital, Albilad Capital, Al Rajhi Capital, Derayah Financial, Saudi Fransi Capital, SAB Invest, Alkhabeer Capital, and Sahm Capital.
