Jazan-based Sama Water plans to offer a 20% stake (equivalent to 10 mn shares) in an IPO on Tadawul’s parallel market Nomu, the company said in the offering’s prospectus (pdf). The bottled water and ice cube maker lined up the Capital Market Authority’s approval to kick off the offering in June.

This is a secondary offering: The offered shares will be sold by the two substantial shareholders — ِِAbd Allah Tebeqi and Ziad Tebeqi — whose combined stake in the company will be reduced to 80%, down from 100%, after the offering is fully covered. ِِAbd Allah Tebeqi will see his 80% stake reduced to 64%, while Ziad Tebeqi will see his 20% stake reduced to 16%.

The timeline: Qualified investors can start putting down orders for the IPO starting Wednesday, 2 October and until the following Tuesday, 8 October. The final share allocations will be announced on Sunday, 13 October, with any excess subscription fees set to be refunded within two business days. The first day of trading will be determined once the company meets all regulatory requirements. Investors can subscribe to a minimum of 100 shares, and a maximum of c. 2.5 mn shares.

Use of proceeds: The selling shareholders will take home all proceeds from the offering, after deducting SAR 2.4 mn in IPO expenses.

Lock-up period: Major shareholders are restricted from selling their shareholdings for a 12-month period beginning with the start of trading.

ADVISORS- Yaqeen Capital is serving as the financial advisor and lead manager, while Moore is auditor. Al Rajhi Capital, Riyad Capital, Alinma Investment, AlJazira Capital, SAB Invest, Derayah Financial, BSF Capital, SNB Capital, Alistithmar Capital, Albilad Capital, ANB Capital, and Alkhabeer Capital are all receiving agents.

Earnings snapshot: Sama Water’s net income grew 36.1% y-o-y to SAR 9.2 mn in FY 2023. Meanwhile, revenues inched up 3.4% at SAR 87.4 mn.

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