Sign World issues prospectus for Nomu IPO: The National Signboards Company for Industry (Sign World) is taking 1.5 mn shares to Tadawul’s parallel market Nomu — equivalent to 20% of the firm’s post-IPO capital — in a primary offering, it said in its prospectus (pdf). The sale, which targets qualified investors, will help fund Sign World’s future growth plans. The firm secured regulatory approval for the move just over four months ago.

A growth play, not exit: This is the first primary issuance on the parallel market since AnmatTechnology’s IPO in May — an uncommon structure for Nomu listings, which are more commonly designed to facilitate shareholder exits. Al Mohandess Group Holding, Sign World’s sole owner, will see its share diluted to 80% post-listing and will be restricted by a 12-month lockup period from the first day of trading.

What’s next: Subscriptions will open on Sunday, 17 August and wrap up on Sunday, 24 August. Qualified investors will be able to book between 10 and c.375k shares each at the final offer price, which is yet to be determined. Final allocations are due on Wednesday, 27 August.

Keeping the whole pie: Sign World will allocate net proceeds from the IPO to funding its SAR 37 mn expansion plan, new metal structures, machinery upgrades, and vehicle purchases. Some SAR 6 mn will go toward covering transaction-related expenses, with no proceeds distributed to shareholders.

Latest earnings: The company’s net income grew 28% y-o-y to SAR 3.7 mn in 9M 2024, while its revenue was down 8.9% y-o-y at SAR 55.4 mn over the same period.

About Sign World: Founded in 2011, the Riyadh-based company manufactures architectural and traffic signage, including wayfinding signs, gantries, billboards, and LED displays. The company operates a 20k sqm facility in the capital with over 200 employees. It executes projects for both government and private sector players across the Kingdom.

ADVISORS- Yaqeen Capital is quarterbacking the transaction as the company’s financial advisor and lead manager.

Receiving agents include our friends at EFG Hermes KSA, along with Derayah Financial, Alistithmar Capital, Alinma Capital, SNB Capital, AlJazira Capital, Riyad Capital, Albilad Capital, Al Rajhi Capital, BSF Capital, Sab Invest, Alkhabeer Capital, Sahm Capital, GIB Capital, Musharaka Capital, Awaed Capital, ANB Capital, and Yaqeen Capital.

ALSO IN THE NOMU PIPELINE- The Capital Market Authority has most recently cleared Nayomi brand operator Jamjoom Fashion Trading, online supplement store AlwaznAlmithaly for Trading, along with two new equity funds to list on the parallel market. Qudra for Communications and IT, medical equipment supplier Wajd, and property developer Hammad Mohammed Bin Saedan Real Estate had also lined up the regulator's approval earlier to IPO on Nomu.

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