Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

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RIYADH: Knowledge Tower Trading Co. will conduct an initial public offering of its 350,000 ordinary shares on the Nomu-Parallel Market according to the company’s plans, revealed by its financial advisor Watheeq Capital.

This represents around 20 percent of Knowledge Tower’s SR18 million ($5 million) share capital, which is divided into 1.75 million shares, as it was stated in a filing with the Stock Exchange.

The end price of the offering is expected to be determined once the book-building process for the offering has been completed.

The offering period will run from Oct. 30 through Nov. 3 for qualified investors, according to the statement.

As of Sept. 12, the Capital Market Authority has approved the company’s application to list on the parallel market Nomu.

This came after it secured the approval of the listing by the Saudi Exchange on July 24.

Watheeq Capital has been appointed as Knowledge Tower’s Financial Advisor, while Derayah Financial has been appointed as Knowledge Tower’s Lead Manager for the IPO.

In its latest earnings report, Knowledge Tower posted SR3.6 million in profits during its financial year ending in March, with its revenue exceeding SR20 million during the same period.

The company expected that its shares would start trading on the parallel market once all its letters were completed.

The Dammam-based company is currently engaged in the wholesale distribution of stationery and office supplies, as well as the retail sale of stationery, newspapers, and magazines as part of its business activities.

The company also publishes printed books, dictionaries, atlases, and maps in addition to importing and producing written, drawn, and illustrated intellectual products.

It is the sole agent for American books published by National Geographic for American schools in Saudi Arabia.

The Saudi stock exchange Tadawul Group announced in March that it had received more than 70 listing applications for both the main index TASI, as well as the parallel index Nomu.

The Saudi Stock Exchange recorded 17 initial share sales in the first half of the year, generating proceeds amounting to $5.07 billion.

The parallel Nomu market accounted for nine listings worth $649 million.

This number is up from 15 offerings during the whole of 2021, which raised almost $5 billion.

As of Tuesday, Sept. 27, TASI, the main market, has listed 10 IPOs, while Nomu, the parallel market, has listed 11 IPOs.

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