Retail subscription to 1.2M shares of TALCO starts on TASI today

Logo of Al Taiseer Group Talco Industrial Co. (TALCO) 

Retail investors will start today, May 28, subscription to 1.2 million shares of Al Taiseer Group Talco Industrial Co. (TALCO) at SAR 43 each, as set by the book-building process. 

The retail offering represents 10% of the total offer.

For More IPOs

The subscription process for the retail tranche will run for two days until May 29.

The Capital Market Authority (CMA) approved, in December 2023, the company's request to float 12 million shares, or 30% of the capital, amounting to SAR 400 million divided into 40 million shares, in an initial public offering (IPO). The nominal value per share stands at SAR 10.

The company’s institutional offering, which ended last week, was 68.5x covered.

TALCO’s IPO is the sixth this year for the Main Market, after Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care Group) on May 21 and Saudi Manpower Solutions Co. (SMASCO) on May 26.

Tadawul witnessed eight IPOs in 2023, including MBC Holding Group Ltd., Morabaha Marina and Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co., First Milling Co., Lumi Rental Co., ADES Holding Co., and SAL Saudi Logistics Services Co.

Company Profile
 

TALCO was established in 1976 and is located in Riyadh. It converted into a closed shareholding company in 2009.

The company's current activities are represented in the following segments: aluminum, powder-coated products, accessories products, their manufacturing and marketing.

Below is an overview of the company's core activities:

The company holds significant production shares in Saudi Arabia and the GCC countries across most operating segments. Its share of aluminium forming production reaches 23%, while its share in the powder coating sector is 21%, and it holds a 60% share in the leakage prevention products segment.

The company currently operates six factories/production facilities—four in Riyadh and two in Jeddah—with an annual production capacity of 60,000 metric tons by the end of June 2023 for the aluminium segment—the company’s largest segment. Additionally, it has main warehouses for storing and distributing products in Riyadh, Jeddah, Dammam, and Dubai.

The company's sales within the Kingdom had the largest contribution to total sales, representing 77.9% in 2023. TALCO’s sales are mainly concentrated in Riyadh.

The company also exports its products to more than 26 countries, including countries in the GCC, the MENA region, East Asia, Australia, the US, and Europe, with sales outside the Kingdom accounting for 22.1% of its total revenues during the year 2023.

Company's Geographical Locations:

Headquartered in Riyadh, the company currently operates through nine locations, as below: