National Learning discloses use of IPO proceeds

The National Company for Learning & Education (NCLE) announced the use of its initial public offering (IPO) proceeds until the end of November 2019, according to a bourse filing on Tuesday.

The gross proceeds of the IPO recorded SAR 247 million, while net proceeds stood at SAR 232 million after deducting IPO related expenses and fees of around SAR 16.01 million.

The IPO proceeds are allocated as follows:

1) An amount of SAR 59.6 million was allocated to finance and build an educational complex in Buraidah, Qassim.

2) An amount of SAR 51.15 million and SAR 58.6 million went towards establishing Al Qasr educational complexes 1 and 2 in Al Khobar, respectively.

3) A total of SAR 51.99 million was directed to establish Doha Hills Schools Complex in Dhahran, Eastern Province.

The company noted that the general assembly approved, during the meeting held in Dec. 5, 2019, redirecting the use of SAR 109.4 million from the IPO proceeds from financing Al Qasr educational complexes 1 and 2 in Al Khobar, to finance the acquisition of the entire stake of Riyadh-based Al-Ghad School and Al-Khwarizmi Co. for Education in consideration of SAR 66.7 million.

Meanwhile, the rest of SAR 42.7 million will be used to complete the financing of the project of constructing, furnishing, and operating a school complex in Al Qirawan.

NCLE further stated the reasons of the deviation in the actual use of proceeds, and the reasons and justifications are as follows:

1) Allocating a total of SAR 50.68 million until the end of Nov. 30, 2019, from SAR 59.60 million to finance and establish an educational complex in Buraidah, Qassim.

2) Allocating an amount of SAR 41.60 million until the end of Nov. 30, 2019 from SAR 51.99 million to finance and construct Doha Hills Schools Complex in Dhahran, and only SAR 5.87 million were used to finance the project.

In a separate statement, NCLE said that Doha Hills Schools Complex in Dhahran is expected to start operation in 2021-2022 instead of 2020-2021 due to the delay in issuing the required licenses from concerned authorities.

The company said there is no change in the project’s estimated cost, and the delay has no financial impact on the company’s financials for fiscal year 2020-2021.