Watani Iron Steel Logo
Watani Iron Steel Co. starts trading today, Feb. 17, 2021, as the second direct listing on Nomu - Parallel Market, under the symbol 9513 and ISIN Code SA158GIKKKH8.
The stock will have +/- 30% daily price fluctuation limits and +/- 10% static price fluctuation limits.
On Dec. 30, 2020, the Capital Market Authority (CMA) approved the registration of Watani Steel shares for the purpose of direct listing on Nomu. The shares’ trading will be confined to qualified investors as stipulated in the CMA regulations and rules.
In January, the company published the document of listing its shares on Nomu.
This is the second direct listing on the parallel market after Riyadh Cement Co. (formerly Saudi White Cement Co.), and the first direct listing on Nomu in 2021.
Information about the company
Watani Iron Steel was established as a limited liability company in August 2008, with shareholders approving converting it into a closed joint-stock company in May 2020, with SAR 121.1 million capital, divided into 12.11 million ordinary shares.
The company's annual production capacity stands at 280,000 tons of billet and 320,000 tons of rebars.
Watani Iron Steel also produces steel rebars using the billet produced at its factory. Its operations are divided between two units: one for producing billet and the other for steel rebars.
The company manages operations via its office on Kharj Road, south of the Third Industrial City, Riyadh.
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Company Profile |
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Company |
Watani Iron Steel Co. |
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Market |
Nomu – Parallel Market |
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Field of Activity |
Production of billet and iron rebars |
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Status |
Existing |
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Capital |
SAR 121.1 million |
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Direct Listing Information |
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No. of Shares |
12.11 million |
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Share Par Value |
SAR 10 |
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Price guidance |
SAR 37 |
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Method of Setting Opening Price |
The share opening price is set based on demand and supply, by means of the opening auction mechanism. During such a period, investors can enter buy/sell orders, and thus the trading system finds the fair price with which orders are executed after being matched during the auction period. The execution price will be the opening price with an allowed daily fluctuation ratio of 30%. The price guidance is considered a reference only for the fair market value, which is the debut price for the first day only. |
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Qualified Investors |
- Current shareholders (except for owners of 5% or more for which the lock-up applies. |
Abdul Karim Al-Rajhi is the company's major shareholder with a 44.96% stake. The following table illustrates the company's shareholders before listing:
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Shareholders of Watani Steel |
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Shareholders |
Before Direct Listing |
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No. of Shares (mln) |
Ownership |
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Abdul Karim Al-Rajhi |
5.44 |
44.96% |
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Youssef Al-Turaif |
2.42 |
19.98% |
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Mishaal Abdul Karim Al-Rajhi |
0.55 |
4.55% |
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Mishary Abdul Karim Al-Rajhi |
0.54 |
4.49% |
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Mounria Ibrahim Al-Thunayan |
0.48 |
3.99% |
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Sarah Zamil Al-Dhakir |
0.14 |
1.12% |
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Public (55 shareholders) |
2.53 |
20.88% |
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Total |
12.11 |
100% |
The categories of qualified investors are as follows:
- Authorized persons who act for their own account.
- Clients of a person licensed to conduct activities management provided that this person was appointed with conditions allowing him to take all decisions related to the participation in the offer and investment on Nomu on behalf on the client without the need for a prior approval.
- Government entities, any international body recognized by the CMA, the Exchange, or any other stock market recognized by the CMA, or the Depository Centre.
- Government-owned companies, investing directly or through a portfolio manager.
- Companies and funds established in the GCC
- Investment funds
- Non-resident foreigners who are permitted to invest in the parallel market and who fulfil the requirements stipulated in the investment guidelines.
- Qualified foreign financial institutions.
- Legal persons who will open an investment account in the Kingdom, and an account with the Depository Centre.
- 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:
1) 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.
2) Value of his/her net assets should be worth no less than SAR 5 million.
3) He/she works or has previously worked for at least three years in the financial sector.
4) He/she holds the General Securities Qualification Certificate, recognized by the CMA.
5) He/she holds a professional certificate specializing in the securities business and accredited by an internationally recognized entity.
- Any other persons prescribed by the CMA.
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