Bakery and logistics firm Shmoh Almadi is taking a 14.9% stake to Tadawul’s parallel market Nomu, it said in a prospectus (pdf). The stake is equivalent to 1.4 mn shares.

Use of proceeds: SAR 2.4 mn from the offering will cover IPO-related expenses, with the remainder earmarked to fund Shmoh Almadi’s expansion plan. Some SAR 7 mn will be used to hike the company’s capital, while existing shareholders will not receive any proceeds.

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Post-IPO structure + lockup: Substantial shareholders will see their combined ownership diluted to 65.5% from 77%. They will not be able to sell down their positions for a 12-month period starting from the first day of trading.

Timeline: Qualified investors can book shares between Tuesday, 24 December and Tuesday, 31 December with a minimum subscription limit of 10 shares and a maximum of 470k shares for each investor.

Earnings snapshot: Shmoh Almadi reported a net income of SAR 5.7 mn in 1Q 2024, down 39.7% y-o-y. The company logged SAR 37.4 mn in revenues during the same period, marking a 19.2% decrease.

About Shmoh Almadi: Established in 2006, Shmoh Almadi specializes in producing bread, biscuits, pastries, and sweets, along with refrigerated and dry food storage, grain silo operations, goods transportation, and retail sales of bakery products.

ADVISORS- Value Capital is quarterbacking the transaction as lead financial advisor and bookrunner, while Mahama is acting as legal 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.

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