A look at Five Colors share sale via Scopeer crowdfunding platform

Logo of Five Colors

Five Colors, a company specialized in cinema and media production, floated a percentage of its share capital through Scopeer equity-based crowdfunding platform, which is licensed by the Capital Market Authority (CMA).

Subscribers can register on Scopeer.com to directly buy the offered shares.

In July 2018, the Saudi market regulator granted Scopeer, a crowdfunding limited company, a Financial Technology Experimental Permit (ExPermit), to create equity crowdfunding platform. Scopeer was authorized to experiment the crowdfunding FinTech, which allows investors to participate in funding small and medium size enterprises in exchange for shares in such enterprises.

According to the company’s prospectus, Five Colors has SAR 500,000 in capital. Shareholders agreed on increasing this capital through offering a minimum of 3,290 shares, or 6.17% of capital, and a maximum of 24.76% of capital.

Five Colors targets to raise a maximum of SAR 4.99 million, or a minimum of SAR 999,760. Shares are offered at SAR 303.88 each.

The share sale targets three tranches

- Retail investors: The tranche comprises all natural Saudis.

- Professional investors: The tranche comprises any natural person that at least fulfills one of the following requirements:

1) Executed no less than ten transactions through the capital market in every quarter over the last 12 months at a total value of SAR 40 million minimum;

2) The value of net assets is no less than SAR 5 million;

3) Works or has worked for three years at least in the financial sector;

4) Holding a specialist professional certificate in securities dealing, certified by an internationally recognizable entity.

5) Holding a general certificate in securities dealing, certified by the CMA, with an annual income of no less than SAR 600,000 in the last two years.

- Investment companies.

A total of 12.90 million shares or 100% of the offering size will be allocated to the participating parties, subject to a scale-back to 90% or 11.61 million shares.

Offering

Company’s Profile
Company	FIVE COLORS
Offering Platform	Scopeer
Main activities	A company specialized in cinema and TV production of movies and series, as well as production of documentaries, advertising and promotional materials, podcasts and photography to promote products and services, as well as renting photography studios and cinematic equipment in Saudi Arabia and across the region.
Capital	SAR 500,000.
Number of shares	50,000
Share par value	SAR 10

Offering Summary
Capital after offering	SAR 532,900
Number of shares after offering	53,290 shares at SAR 10 par value, and in the event of reaching the maximum limit, namely 500% over-subscription, the number of shares after the share sale will be 66,450.
Percentage of shares offered	6.17% as a minimum 24.76% as a maximum
Number of shares offered	3,290 shares as a minimum 16,453 shares as a maximum
Offering price	SAR 303.88 per share, inclusive of par value
Total offering value	SAR 999,760 as a minimum SAR 4.99 million as a maximum
Qualified subscribers	- Retail investors - Individual professional investors - Investment firms
Offering minimum limit for retail investors	SAR 1,215.52
Offering maximum limit for retail investors	SAR 19,750
Offering maximum limit for professional investors	Unlimited
Maximum limit for investment companies	Unlimited
Date of offering opening	Dec. 13, 2020
Date of offering closing	March 08, 2021
Allocation	Allocation will take place on a pro rata basis
Uses of offering proceeds	It is expected that the offering total proceeds will reach a maximum of SAR 4.99 million, which will be used in the completion of the company's expansion plans, as follows: 1- Covering employee expenses in order to expand the company. 2- Covering the expenses of producing new artistic works. 3- Covering the expenses of developing and managing the application. 4- Covering the expenses of equipment and servers. 5- Covering marketing expenses. 6- Covering offering expenses.

Major Shareholders
Shareholder	Before offering		After offering Minimum limit		After offering Maximum limit
Shareholder	Number of shares (,000 shares)	Ownership%	Number of shares (,000 shares)	Ownership%	Number of shares (,000 shares)	Ownership%
Tarek Malfy Al-Ruwaili	45.00	90.00%	45.00	84.44%	45.00	67.72%
Mashaael Nasser Al-Ruwaili	5.00	10.00%	5.00	9.38%	5.00	7.52%
Public	--	--	3.29	6.17%	16.45	24.76%
Total	50.00	100%	53.29	100%	66.45	100%

Additional Information

Due diligence

Bayan Credit Bureau

Valuer

Hesham bin Mohammed Alkhorayef for Evaluation of Economic Facilities

In collaboration with Dar Al Qias

For More IPOs

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