Alwaleed Aldryaan CEO of Alkhaleej Training and Education Co.
Alkhaleej Training and Education Co. CEO Alwaleed Aldryaan said the decision to spinoff the communication centers segment to become an independent entity came in preparation for offering it on Nomu - Parallel Market.
The company will mainly focus on education and training, and will have a wholly-owned independent communication centers subsidiary, Aldryaan told CNBC Arabia TV Channel.
He added that the firm is seeking to expand in the education sector and cover the lower- middle-income segment, which represents a large proportion of society, in addition to the middle- and upper middle-income segment that was previously covered.
The number of students in the company will likely reach 12,000 in the next two years, the top executive said.
The Tadawul-listed company launched a rights issue to expand in the education sector and cover the new segment to refrain from bank borrowing despite being in an excellent position with banks.
Alkhaleej Training has a strong borrowing capacity. The company’s loans increased to SAR 390 million, as it usually borrows to build educational assets, such as buying land plots and constructing buildings, which requires huge funds.
Aldryaan indicated that the company has a payment plan with banks, noting that the returns on building educational assets usually appear in three to five years, which was taken into account when developing the repayment plan.
The firm offered 20 million shares at SAR 10 each in a rights issue, at a total value of SAR 200 million, to increase its capital from SAR 450 million to SAR 650 million. It aims to use the capital hike proceeds in partial repayment of short-term facilities, Argaam earlier reported.
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