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Balsm Alofoq Medical is taking a 25% stake (250k newly-issued shares) to Tadawul’s parallel market Nomu in an offering that is open to qualified investors, the firm said in its prospectus (pdf). The firm lined up capital market approval for the move back in September.
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Use of proceeds: SAR 2.35 mn of the offering’s proceeds will go towards covering IPO-related expenses. Net proceeds from the sale will be channeled towards funding the company’s expansion plans — expected to cost SAR 24.9 mn — including the procurement of medical equipment and the development of warehouses. The company will turn to alternative financing such as bank loans if the offering proceeds fail to meet the targeted funding, while surplus funds will be allocated towards boosting working capital.
Timeline: Qualified investors can book a maximum of 62,490 shares and a minimum of 10 shares during the subscription period which runs between Sunday, 1 December and Thursday, 5 December. The final allocation is slated for Tuesday, 10 December and any excess funds will be refunded by Thursday, 12 December. The first day of trading will be announced once all regulatory requirements have been met.
Post-IPO structure + lockup: The outfit’s three major shareholders — Khamis Abdallah Al Harbi, Ghadeer Khamis Al Harbi, and Raghad Khamis Al Harbi — will see their ownership diluted from a combined 88.75% stake down to 71%. They will not be able to sell down their positions for a period of 12 months from the first day of trading.
A snapshot of FY 2023: The company logged SAR 4.2 mn in net income last year, up from the SAR 3.5 mn it posted for 2022, according to audited earnings results published in the prospectus. Revenues came in at SAR 18 mn for the year, up from SAR 17 mn in 2022.
About Balsm Alofoq: Founded in 2012, the Buraidah-based company specializes in the operation of hospitals, clinics, one day surgery centers, medical laboratories, and the wholesale of medical devices, according to the prospectus.
ADVISORS- Yaqeen Capital is quarterbacking the transaction as financial advisor and lead manager. Receiving agents include Alistithmar Capital, Alinma Investment, SNB Capital, Al Jazira Capital, Riyad Capital, ANB Capital, Albilad Capital, Al Rajhi Capital, Saudi Fransi Capital, SAB Invest, Alkhabeer Capital, Sahm Capital, among others.
