AI Summary
Logo of Zahr Al Khuzama Aluminum Co. (Lavenco)
Subscription to 300,000 shares of Zahr Al Khuzama Aluminum Co. (Lavenco) begins today, Nov.12, on the Nomu-Parallel Market. The price was set at SAR 48 per share.
The shares offered represent 25% of the company’s pre-IPO capital and 20% of post-IPO capital. The company's current capital stands at SAR 12 million, divided into 1.2 million shares, with a nominal value of SAR 10 per share.
The share sale will last for five business days, including the closing day on Nov. 18.
With Lavenco, the number of IPOs on Nomu has reached 27 since the start of the year. 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.
The Capital Market Authority (CMA) approved the company’s request to offer its shares in June 2025.
Lavenco was established in Riyadh as a sole proprietorship under the name Zahr Al Khuzama Aluminum Factory in 2016. Its core business activities include the manufacture of aluminum and glass doors and windows, as well as the production of metal structures and components made of aluminum and iron (such as glass support frames). The company also specializes in the manufacturing of glass facades and cladding panels.
The company produces six main products with varying production capacities. The aluminum louver product achieved the highest utilization rate at 70%, followed by the glass façades for buildings at 69.3%, as shown in the following table:
|
Product |
Production Capacity (‘000 unit) |
Actual Production (‘000 unit) |
Actual Production to Capacity (%) |
|
Aluminum Louvers (m²) |
8 |
5.60 |
70.0 % |
|
Glass Façades (m²) |
20 |
13.87 |
69.3 % |
|
Aluminum Windows (m²) |
15 |
5.22 |
34.8 % |
|
Aluminum Doors (m²) |
9 |
2.59 |
28.7 % |
|
Aluminum Facades (Cladding) (m²) |
24 |
8.67 |
24.8 % |
|
Aluminum Railings (linear meter) |
12 |
0.57 |
4.8 % |
The building glass façades product accounted for the largest share of the company’s revenues by the end of 2024, at about 41%, with a value of approximately SAR 10 million, followed by aluminum windows with a share of around 26%, as shown in the following table:
Revenue by Product at 2024-end (SAR mln)
|
Product |
Revenue (SAR mln) |
Percentage to Total (%) |
|
Glass Façades |
9.98 |
40.79 % |
|
Aluminum Windows |
6.34 |
25.92 % |
|
Aluminum Louvers |
3.12 |
12.75 % |
|
Aluminum Doors |
3.03 |
12.40 % |
|
Aluminum Facades (Cladding) |
1.76 |
7.20 % |
|
Aluminum Railings |
0.23 |
0.94 % |
|
Total |
24.47 |
100 % |
More than 99.7% of the company’s revenues came from the private sector, amounting to about SAR 24.4 million out of total revenues by the end of 2024, while the government sector represented the remaining percentage.
The company intends to use the proceeds from the offering, after deducting related costs and expenses, to finance its future expansion plans. If the net proceeds from the offering are less than the cost of these activities or any additional or unlisted expenses, the company will rely on its available liquidity, after ensuring its ability to manage working capital efficiently, or resort to borrowing from financial institutions when necessary.
Any surplus in the net proceeds from the offering will be used as working capital to support the company’s operational activities.
The company intends to allocate the offering proceeds as shown in the following table:
|
Item |
Estimated Cost (SAR mln) |
|
Establishing a factory in Dammam with an area of 7,980 m² |
5.14 |
|
Purchasing production lines for the aluminum segment |
1.15 |
|
Working capital for operating the aluminum segment |
4.50 |
|
Purchasing production lines for the steel segment |
0.76 |
|
Working capital for the company |
2.45 |
|
Total |
14.00 |
|
Company Profile |
|
|
Company |
Zahr Al Khuzama Aluminum Co. (Lavenco) |
|
Market |
Nomu-Parallel Market |
|
Core Activities |
Manufacturing aluminum and glass products, metal structures and components, glass facades and cladding panels |
|
Pre-IPO Capital |
SAR 12 mln |
|
Number of Shares |
1.2 mln ordinary shares |
|
Post-IPO Capital |
SAR 15 mln |
|
Number of Shares after IPO |
1.5 mln ordinary shares |
|
Nominal Value |
SAR 10 |
|
IPO Summary |
|
|
Issue Percentage |
25% of pre-IPO capital and 20% of post-IPO capital |
|
Offered Shares |
300,000 shares |
|
IPO Minimum Limit |
10 shares |
|
IPO Maximum Limit |
74,990 shares |
|
Offer Period |
Nov. 12-18, 2025 |
|
Final Allocation |
Nov. 23, 2025 |
|
Surplus Refund (if any) |
Nov. 25, 2025 |
|
Company Shareholders |
||||
|
Shareholders |
Before IPO |
After IPO |
||
|
Number of Shares (‘000) |
Ownership (%) |
Number of Shares (‘000) |
Ownership (%) |
|
|
Abdullah Shabib Majri Al-Subaie* |
1056 |
88 % |
1056 |
70.4 % |
|
Faisal Abdullah Shabib Majri Al-Subaie |
48 |
4 % |
48 |
3.2 % |
|
Khalid Abdullah Shabib Majri Al-Subaie |
48 |
4 % |
48 |
3.2 % |
|
Mohammed Abdullah Shabib Majri Al-Subaie |
48 |
4 % |
48 |
3.2 % |
|
Qualified Investors |
-- |
-- |
300 |
20.0 % |
|
Total |
1200 |
100 % |
1500 |
100 % |
* The indirect and total ownership of shareholder Abdullah Al-Subaie amounts to 96,000 shares (8% before the offering and capital increase, and 6.40% post IPO), through the ownership of his minor sons, Khalid and Mohammed Abdullah Al-Subaie, each holding 48,000 shares (4% before the offering and 3.20% post IPO). Accordingly, the total direct and indirect interest amounts to 1,152,000 shares, representing 96% before the offering and 76.80% after the offering.
|
Additional Information |
|
|
Financial Advisor |
Amwal Capital |
|
Lead Manager |
Derayah Financial |
|
Receiving Agents |
Alinma Capital, Al Rajhi Capital, SNB Capital, BSF Capital, Riyad Capital, ANB Capital, Alibilad Capital, AlJazira Capital, Alistithmar Capital, Yaqeen Capital, Alkhabeer Capital, SAB Invest, Sahm Capital, GIB Capital, Musharaka Capital, EFG-Hermes, Awaed Alosool Capital |
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