Signworld opens today subscription to 1.5M shares on Nomu

Logo of National Signage Industrial Co. (Signworld)

Qualified investors begin today, Aug. 17, subscription to 1.5 million shares of National Signage Industrial Co. (Signworld) on the Nomu-Parallel Market. The price range is set at SAR 12-15 per share.

For More IPOs

The shares on offer represent 20% of the company’s post-offering and 25% of pre-offering capital.

The company's current capital is SAR 60 million, which will increase to SAR 70 million after the offering, divided into 7.5 million shares with a nominal value of SAR 10 per share.

The subscription period for qualified investors in the offering shares will continue for six business days, ending on Aug. 24.

Today’s listing of Signworld will bring this year’s IPOs to 20 since the beginning of 2025.

In March, the Capital Market Authority (CMA) approved Signworld’s application to offer its shares on Nomu.

Nomu witnessed 28 IPOs in 2024.

The subscription is limited to qualified investors, including:

-  Capital market institutions authorized to act on their accounts.

- 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 participation in the share offering and investment in Nomu on behalf of clients without prior consent.

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

- Companies owned by the government, directly or through a portfolio managed by a person authorized to practice management operations.

- Investment funds, companies, and funds established in the GCC countries

- Investment funds 

- Natural persons are allowed to open investment accounts inside the Kingdom and with Edaa, provided they fulfill certain criteria, including the below:

1) They should have executed transactions in the securities markets worth a minimum of SAR 40 million, and at least 10 deals in each quarter during the past 12 months.

2) Natural persons should also have a net asset value of at least SAR 5 million.

3) They should be working or have worked for at least three years in the financial sector.

4) They should hold a general certificate in securities dealing, approved by the CMA.

5) They should further hold a professional certificate in the field of securities business, approved by an internationally recognized body

- Any other persons identified by the CMA.

Company Overview

National Signage Industrial Co. (Signworld) was initially established as a limited liability company in Riyadh in 2016. It later converted to a closed joint-stock company. Its current business activities include design, manufacturing, and assembly of electronic plates and screens for various purposes, as well as their installation and maintenance.

The company has three branches as follows:

1- Branch 1: Processing and coating metals by engraving, cutting and engraving on metals with laser beams, manufacturing non-electrical metal signs, placards, and informational boards, and manufacturing display screens.

2- Branch 2: Repairing and maintaining roads, streets, sidewalks, and road accessories.

3- Branch 3: Installing and assembling neon signs and repairing consumer electronic devices.

The company's advertising sign segment accounts for the largest share of total revenue, with more than SAR 20.6 million, representing over 37% of the total. This is followed by the screens projects segment, with over 25% and a value of approximately SAR 14.1 million, as of Sep. 30, 2024.

Following are the details of the company's revenues by sector for the fiscal years 2022, 2023, and the first nine months of 2024, as shown in the table below:

Revenues by Sector (in SAR mln)

The private sector accounted for 62.28% of the company’s total revenue of SAR 55.4 million, amounting to SAR 34.5 million, while the government sector represented 37.72% with nearly SAR 21 million, as of Sept. 30, 2024.

The company intends to use the net proceeds from the offering to finance its expansion plan during the period from Q4 2025 to Q3 2028.

If the net proceeds fall short of covering the expansion plan’s cost, or any additional costs or items not included in the plan, the company will rely on available liquidity, after ensuring its ability to efficiently manage working capital. Otherwise, it will seek financing from the Kingdom’s funding entities.

The company further noted that any surplus in the net proceeds will be used as working capital for its operating activities.

Below is a summary of the estimated cost of the expansion plan: