Burgerizzr announces details of share offering on Nomu

Logo of Burgerizzr

Mataam Bayt AlShatira Lilwajbat Alsariya (Burgerizzr) announced, today, Aug. 3, the prospectus on offering 29% of its capital, or 725,000 shares, on the Nomu-Parallel Market.

In June, the Capital Market Authority (CMA) approved the application submitted by Burgerizzr to offer shares on the parallel market.

According to the prospectus, the subscription for the qualified categories will start from Sunday, Aug. 15, until Monday, Aug. 23.

Company Profile:

The company was established as a sole proprietorship by its owner, Muhammad Al-Ruwaigh, in Riyadh in 2009. It was converted into a limited liability company with SAR 1 million capital in 2013.

In 2019, Burgerizzr's capital increased by SAR 24 million by capitalizing the increase from retained earnings as of Dec. 31, 2018, to bring the company's capital to SAR 25 million. It was converted into a closed joint stock company, as per a resolution from the Ministry of Commerce.

Burgerizzr runs fast-food restaurants, specifically burgers. Its business also includes selecting branch locations, supply chain and branch operations.

The most important operations are based on the following points:

- Branch operations department: The company's branches reached 79 as of Dec. 31, 2020, distributed across the Kingdom.

- Central kitchen: The company has a supply department that manages the central kitchen and food preparation, which is considered the backbone of the supply operations for all branches.

- Marketing activities and various sale channels: The firm uses its marketing activities to communicate with customers.

- Care and quality-related operations

- Licenses-related operations: The company has a specialized department to follow up the licenses of the municipality and civil defense for all its branches and sale channels.

Burgerizzr depends on several main sales channels to complete the sale and deliver the product, namely point of sales (POS) and electronic channels such as call center and delivery apps.

The company does not have any commercial activity outside the Kingdom and has no subsidiaries within or outside the Kingdom. In addition, it has not opened any branch overseas.

Muhammad Al-Ruwaigh is the major shareholder of the company with a 43% stake. The following table illustrates the details of owners before and after the offering:

The categories of qualified investors are as follows:

1- Authorized persons who act for their own account.

2- Clients of a person licensed to conduct activities management with the provisions and restrictions set forth in the book-building instructions.

3- Government entities, any international body recognized by the CMA, the Exchange, or any other stock market recognized by the CMA, or the Depository Centre.

4- Government-owned companies, investing directly or through a portfolio manager.

5- Companies and funds established in the GCC

6- Investment funds

7- Non-resident foreigners who are permitted to invest in the parallel market and who fulfil the requirements stipulated in the investment guidelines.

8- Qualified foreign financial institutions.

9- Legal persons who will open an investment account in the Kingdom, and an account with the Depository Centre.

10- Natural persons allowed to open an investment account in the Kingdom and an account with the Depository Centre and fulfil any of the following criteria:

a) He/she has conducted transactions in the stock market of no less than SAR 40 million in total, and no less than 10 transactions in each quarter in the last 12 months.

b) Value of his/her net assets should be worth no less than SAR 5 million.

c) He/she works or has previously worked for at least three years in the financial sector.

d) He/she holds the General Securities Qualification Certificate, recognized by the CMA.

e) He/she holds a professional certificate specializing in securities business and accredited by an internationally recognized entity.

11- Any other persons prescribed by the CMA.

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