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Heavy equipment manufacturer Alshehili Company is taking a 20% stake — good for 500k shares — to Tadawul’s parallel market Nomu, the firm said in its prospectus (pdf) for the offering. Alshehili lined up CMA approval for the move in October.
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Use of proceeds: SAR 4.1 mn from the offering’s proceeds are earmarked for covering IPO-related expenses. Net proceeds will go towards funding Alshehili’s expansion, marketing efforts, and supporting working capital. Current plans see the company setting aside SAR 7 mn for automating cooler box production lines, SAR 4 mn for the procurement of a robotic welding arm, and SAR 3.4 mn for add-on equipment. Alshehili will tap alternative sources of financing including local banks to meet gaps if IPO proceeds fall short, while surplus funds will go towards further supporting working capital.
Post-IPO structure + lockup: The company’s sole substantial shareholder — Hala Fahd Nasser Alshehili — will see her ownership diluted to 58.7% from 73.4%. She will not be able to sell down her positions for a 12-month period starting from the first day of trading.
Timeline: Qualified investors can book shares between Sunday, 5 January and Monday, 13 January with a minimum subscription limit of 10 shares and a maximum of 125k shares apiece. Final allocations are set for Thursday, 16 January, while the first day of trading will be announced after squaring away regulatory and other requirements.
Earnings snapshot: The company logged SAR 10.5 mn in net income for 2023, up from the SAR 7.3 mn it posted for 2022, according to earnings results published in the prospectus. Meanwhile, revenues came in at SAR 60.6 mn for 2023, up from SAR 36.2 mn the previous year.
About Alshehili: Established in 2005, Alshehili specializes in manufacturing steel chassis, trailers, semi trailers, rolling stock, cargo containers, refrigerated containers, as well as other logistics and armoured military vehicles. The outfit also provides MRO services.
ADVISORS- Arbah Capital is quarterbacking the transaction as lead manager, while Forsa Capital is acting as financial advisor. Receiving agents include Alinma Investment, Al Rajhi Capital, SNB Capital, BSF Capital, Riyad Capital, ANB Capital, Alistithmar Capital, Albilad Capital, AlJazira Capital, Yaqeen Capital, Alkhabeer Capital, SAB Invest, Sahm Capital, Derayah Financial.
