Subscription opens for 4.38M shares of Sahat Almajd on Nomu today

Logo of Sahat Almajd Trading Co.

Qualified investors begin today, Oct. 19, subscription to 4.38 million shares of Sahat Almajd Trading Co. on the Nomu-Parallel Market.

The offering price is set at SAR 7 per share.

The shares on offer represent 12.5% of the company’s pre-IPO capital of SAR 35 million, divided into 35 million shares at a par value of SAR 1 each. These shares also represent 11.11% of post-IPO capital.

The subscription period for qualified investors will continue for five business days, ending on Oct. 23.

The listing will bring the number of IPOs on Nomu to 25 since the beginning of 2025.

Nomu witnessed 28 IPOs last year.

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.

CMA approved the company’s application for an IPO last June.

In June, the Capital Market Authority (CMA) approved the company's application to list its shares on Nomu.

Sahat Almajd was initially established as a sole proprietorship in 2005 in Riyadh. It was later converted into a limited liability company, and eventually into a closed joint-stock firm in 2024.

Its current business activities include producing and selling premium chocolates under the “Hanoverian” brand, producing and distributing fresh baked goods and pastries through “Susam”, and serving specialty coffee under the “Jadeel” brand.

The company’s activities also include producing and marketing the “Spark” carbonated beverages, wholesale distribution of various types of chocolate, baked goods, and beverages, wholesale trading of solid fuels, including charcoal and coal, as well as offering and marketing fresh juices and cold beverages within Saudi Arabia.

Sahat Almajd operates six branches within the Kingdom, including four in Riyadh, in addition to one each in Jeddah and Dammam.

The dessert segment accounted for the largest share of 70%, or SAR 116.2 million, of the company’s sales during 2024. The beverages segment ranked second with 29%, or SAR 48.1 million of revenue, followed by the charcoal & coal segment with 1% of total revenue, as shown in the table below:

The Saudi market captured the largest share of the company’s sales at the end of 2024, accounting for 94.3% of total revenue, or SAR 156.6 million.

Meanwhile, revenue from exports to foreign markets amounted to approximately SAR 9.5 million, distributed among Qatar, the UAE, Kuwait, Jordan, Oman, and Bahrain.

Within the Kingdom, the company’s domestic sales were concentrated in the Central region, which accounted for 97.6%, or SAR 153 million, of total local sales at the end of 2024. The remaining percentage was distributed among the Western, Eastern, Southern, and Northern regions.