Marketing Home Group issues prospectus to list 4.8M shares on TASI

Logo of Marketing Home Group for Trading Co. (MHG)

Marketing Home Group for Trading Co. (MHG) announced the prospectus for the offering of 4.8 million shares, through an initial public offering (IPO) on the Main Market (TASI).

The shares represent 30% of the company’s SAR 160 million share capital, which is divided into 16 million shares, each at a nominal value of SAR 10.

The subscription period for retail investors will run for two working days, from Aug. 19-20.

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According to the prospectus, the book-building process and subscription period for participating entities will run from Aug. 3-7.

The Capital Market Authority (CMA) approved on March 17 the company's application to list its shares on TASI.

The subscription is limited to two categories of investors:

Tranche (A) Participating Entities: This tranche includes the parties entitled to participate in the offering process in accordance with the book-building instructions. It includes investment funds, companies, qualified foreign investors, GCC corporate investors, and certain other foreign investors pursuant to swap agreements.

The number of shares allocated to this tranche is 7.5 million shares, representing 100% of the shares offered for subscription. The lead manager reserves the right to reduce the number of shares allocated to participating entities to a minimum of 3.84 million shares, representing 80% of the total offering shares.

Tranche (B) Retail Subscribers: This tranche includes natural Saudi individuals, non-Saudi residents, and GCC nationals. To be eligible, they must have an investment account and an active portfolio with a receiving agent and must also be qualified to open an investment account with a financial market institution. The maximum number of shares allocated to this tranche is 960,000, representing 20% of the total.

Key background

MHG is a Saudi closed joint-stock company based in Riyadh. It began as a sole proprietorship in 2005.

The group focuses on construction materials as well as brand development and management. Its core activities include manufacturing of concrete, cement, gypsum, and structural metal products, as well as building construction.

The company also engages in the wholesale trading of fuel as well as solid, liquid, and gas, along with the retailing of hardware, paint, glass, home appliances, and furniture. This is in addition to the provision of land freight and warehousing services.

Its main business lines cover tiles and accessories, lighting products, sanitaryware, and HVAC systems.