NCLE shelves Al Qasr complexes for more feasible investments

National Company for Learning and Education (NCLE) has disclosed use of its initial public offering (IPO) proceeds until the end of August 2019.

The gross proceeds of the IPO reached SAR 247 million, while net proceeds stood at SAR 230.99 million, after deducting IPO related expenses and fees of around SAR 16.01 million, the company said in a statement on Tadawul.

- An amount of SAR 59.6 million was allocated to financing and building an educational complex in Buraidah, Qassim.

- A sum of SAR 51.99 was directed to establishing Telal Al Doha Complex in Dhahran (previously Al Taraji educational complex), Eastern Province.

- A total of SAR 51.15 million and SAR 58.6 million went towards establishing Al Qasr educational complexes 1 and 2 in Al Khobar, respectively.

The company’s board of directors has delayed the construction works in Al Qasr educational complexes 1 and 2 in Al Khobar, as the company will direct the allocated funds to more feasible investment opportunities, in line with the company’s expansionary strategy. The company may also acquire two existing educational entities in Riyadh, pending the regulatory approvals.

No relevant financial impact is expected on financials of FY2019/2020, the statement added.

According to data compiled by Argaam, the Riyadh-based school operator offered 13 million shares in an IPO, of which 90 percent was offered to institutional investors and 10 percent to retail investors (1.3 million shares).