Qualified investors start subscription to 350,000 shares of Knowledge Tower today

Logo of Knowledge Tower Trading Co.

Qualified investors start today, Oct. 30, subscription to 350,000 shares, or 20% of share capital, of Knowledge Tower Trading Co. on Nomu-Parallel Market, with an IPO price of SAR 40 per share.

The subscription period will run for five days until Nov. 3.

Knowledge Tower is the 13th IPO on Nomu since the beginning of the year. It followed the listing of Gas Arabian Services Co. on Jan. 23, Raoom Trading Co. on Jan. 30, Al-Jouf Mineral Water Bottling Co. on Feb. 6, Arabian International Healthcare Holding Co. (Tibbiyah) on Feb. 15, Arabian Food & Dairy Factories Co. (FADECO) on May 11, Ladun Investment Co. and Amwaj International Co. on May 22, Saudi Networkers Services Co. on July 24, International Human Resources Co. (IHR) on July 31, Naba Alsaha Medical Services Co. on Aug. 8, Arabian Plastic Industrial Co. (APICO) on Sept. 11 and AlBabtain Food on Sept. 25.

On Sept. 12, the Capital Market Authority (CMA) approved the company’s application to offer shares on Nomu.

The subscription is limited to certain categories of investors, including capital market institutions authorized to act on their own account, as well as clients of capital market institutions authorized to carry out management operations. This is provided that they are appointed under terms that enable them to take decisions related to accepting the participation in the share offering and investment in the parallel market on behalf of the clients without prior consent.

The categories also include Saudi government, any government body, any international entity approved by the CMA or the Saudi market or any other financial market recognized by the CMA or the Securities Depository Center (Edaa).

They also include companies owned by the government, directly or through a portfolio managed by a market institution authorized to practice management operations, investment fund, in addition to companies and funds established in the GCC countries.

Investors qualified to participate in the subscription include non-resident foreigners, who are allowed to invest in the parallel market, qualified foreign financial institutions and any legal person entitled to open investment accounts inside the Kingdom and with Edaa.

Natural persons are also among the qualified investors allowed to open investment accounts inside the Kingdom and with Edaa, provided that they fulfil certain criteria.

They should have executed deals in the securities markets, at a total value of not less than SAR 40 million, and no less than 10 deals, in each quarter during the past 12 months.

Natural persons should also have net assets value of not less than SAR 5 million and be working or have worked for at least three years in the financial sector. They should hold a general certificate in securities dealing, approved by the CMA, and a professional certificate in the field of securities business, approved by an internationally-recognized body.

The list of qualified investors also includes any other persons to be defined by the CMA.

Company Profile

Incepted in 2011 as a sole proprietorship, Knowledge Tower was converted to a limited liability company in 2018 then to a Saudi closed joint-stock company in 2021, headquartered in Dammam. The firm is capitalized at SAR 17.5 million, divided into 1.7 million shares. Its business activities, as in the commercial register, comprise the wholesale of stationery and office supplies, besides the retail sale of stationery, newspapers and magazines. This is in addition to publishing paper books, dictionaries, atlases and maps, including importing and producing written, drawn or illustrated intellectual products.

Actual business portfolio includes marketing and selling of educational books to schools, universities, training institutes and government educational institutions. This is besides the development of schools educational programs, providing e-learning platforms and modern educational resources for training and designing their educational models.

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