Al Kuzama shares fall on their Nomu debut, failing to break out of a market-wide trend

The share price of Restaurant operator Al Kuzama Trading shed 15% to SAR 91 apiece on its Nomu debut yesterday, adding to a long list of recent listings that fell on their first trading day. This comes despite the strong investor demand for the offering, which was 108.4% oversubscribed by qualified investors, pushing the company to price the IPO at the top of the indicative range at SAR 107 per share.

Most of the recent Nomu debuts are still trading below their IPO price: AxeleratedSolutions saw its share price fall 3% on its first trading day, while Dkhoun National also dropped 19.8% at debut and Service Equipment Company declined 10%. Future Vision for Health Training also shed 5.3% on its first trading day. All of these companies are still trading below their IPO price.

ADVISORS- Yaqeen Capital is quarterbacking the transaction as lead manager and financial advisor, with RSM serving as accountant. Receiving agents include Derayah Financial, Al Rajhi Capital, and SNB Capital, among others.

ALSO IN THE PIPELINE-

• Dome International’s subscription period wrapped up earlier this week;
• Naf for Feed and Industries recently issued a prospectus to float a 20% stake;
• Hawiya Auctions, and Al Khaldi Logistics were the latest to price their Nomu IPOs;
• Meanwhile, Qudra for Communications and IT, the National Signage Industrial Company, medical equipment supplier Wajd, and property developer Hammad Mohammed Bin Saedan Real Estate were given the CMA’s all-clear to list on the parallel market.