Arab Sea Information Systems eyes SAR 11/share IPO price

Arab Sea Information Systems Co. is expected to set the price for its initial public offering (IPO) at SAR 11 per share, for a total of SAR 22 million, according to the IPO prospectus.

The Saudi company is set to offer 2 million shares, or 20 percent of its capital, on the Nomu Parallel Market.

The financial advisor to the offering, KASB Capital, started on Sunday receiving subscription applications that will continue till February 14.

The offering proceeds are expected to go to the promoters after deducting subscription costs amounting to SAR 330,000. Following the IPO, the founding shareholders’ share will drop to 80 percent.

Arab Sea, which was incorporated in 1981, converted into a closed Saudi joint stock with SAR 100 million in capital.

The Riyadh-based company operates in information technology industry, including computers, network and internet services, planning of government finances, costs and plant systems, points of sale and business solutions for small and medium enterprises (SMEs).  

In November, Saudi Arabia’s CMA issued draft rules for the new secondary market as part of its efforts to boost the role of SMEs in the local economy, Argaam earlier reported.