Local contractor Multi Business Group (MBG) is planning to sell a 20% stake on Tadawul’s parallel market Nomu, it said in a prospectus (pdf).The company is issuing 3 mn new shares and putting them up for grabs after lining up Capital Market Authority approval for the move back in September.

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Use of proceeds: MBG earmarked the proceeds to stock up on retail inventory for building materials, and shore up its working capital for ongoing projects, after covering SAR 2.8 mn in costs related to the offering.

The IPO — which will run from Tuesday, 12 November to Monday, 18 November — will be limited to qualified investors, as with all Nomu listings. They will be able to book up to 750k mn shares each, with the lower limit set at 10 shares. The final allocation is slated for Thursday 21 November and excess funds will be refunded by Monday, 25 November.

Ownership + lock-up: The company’s majority shareholder Adel Abdullah Suleiman Al Basri will see his direct and indirect ownership diluted from a 97.5% stake to 78% post-IPO. He will not be able to sell down their positions for a 12-month period from the first day of trading. Minor shareholders will see their positions reduced on a pro rata basis.

Snapshot of 1H 2024 earnings: MBG’s net income clocked in at SAR 4.5 mn in the first half of the year, turning last year’s 10k loss to a positive on the back of an uptick in revenues from the contracting and construction segments, according to its latest financial results in the prospectus. Meanwhile, revenues were up 28% y-o-y to SAR 53.1 mn over the same period.

About MBG: Founded in 2009, the Riyadh-based company operates in construction, manufacturing, transportation, storage, wholesale and retail trade, as well as motor vehicle and motorcycle repair. MBG also provides design and construction services including architectural finishing, interior decoration, and electrical and mechanical engineering for buildings.

ADVISORS- Amwal Financial is quarterbacking the transaction as financial advisor, with AlMaghthawi & Partners providing legal counsel. Derayah will act as lead manager for the offering. Receiving agents include Alinma Investment, AlRajhi Capital, SNB Capital, BSF Capital, Riyad Capital, ANB Capital and Alistithmar Capital, among others.

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