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School operator Horizon Educational is guiding on a price range of SAR 48-54 apiece for its IPO on parallel market Nomu, according to a filing to the exchange. The company is taking a 20% stake to market by issuing 500k new shares. At the top of the range, that would give the company a post-IPO market cap of SAR 135 mn.
About Horizon Educational: Established in 2007, Horizon Educational provides pre-school, kindergarten, primary, middle and secondary education for male and female students at its two educational complexes in Riyadh’s Al Wurud and Al Olaya districts.
Proceeds + valuation: The price range could see the offering generate up to SAR 27 mn in proceeds, according to our calculations. Some SAR 2.3 mn of that figure will be used to cover the offering’s expenses, according to the prospectus (pdf). The remainder will be earmarked for financing the company’s expansion plan, which includes acquiring new branches and ramping up capacity for 1k additional students in Al Olaya campus and 2.5k additional students in Al Wurud.
What’s next? Qualified investors will be able to place orders starting from Sunday, 12 May through to Monday, 20 May, for a minimum of 10 shares and a maximum of 125k shares each. The final allotment will then follow on Sunday, 26 May.
A snapshot of its 2023 earnings: Horizon Educational’s net income grew 25% y-o-y to SAR 8.9 mn last year and revenues were up 13.7% y-o-y to SAR 36.8 mn in FY 2023, which ends on 30 June.
Post-IPO ownership structure + lock-up period: The ownership of the two substantial shareholders will settle at a combined 71.3% stake after the sale, down from 89.1%.Their shares will remain locked up for a period of 12 months from the first day of trading.
ADVISORS- Yaqeen Capital is quarterbacking the transaction as financial advisor and lead manager, while RSM is providing counsel. Receiving agents include Alistithmar Capital, Alinma Investment, SNB Capital, AlJazira Capital, Riyadh Capital, ANB Capital, Albilad Capital, Al Rajhi Capital, Derayah, and Saudi Fransi Capital.
