Riyadh, (Business News Report) – Saudi digital security firm Elm seeks to raise 3 billion riyals ($820 million) in IPO.
The company will offer a share of its shares for public subscription on the Saudi Stock Exchange (Tadawul).
Elm said that the price range for subscription in its shares is between 113 riyals to 128 riyals. The company will determine the price of the offering for public subscription after the completion of the book-building process.
The company, owned by the Saudi Public Investment Fund, intends to sell 24 million shares. This is about representing 30% of its capital, in a public offering.
In the most important information about the subscription, the institutional book building will take place between January 23-28.
The subscription for the individual tranche of 7.2 million shares, will start on February 3, after determining the final offer price.
Riyad Capital Group is the financial advisor and underwriter for the IPO process.
The listing of Elm shares comes at a time when countries in the Middle East are intensifying their efforts to sell shares in private companies and provide liquidity in their stock markets.
Saudi Arabia ranked first in the region last year, with the listing of several companies including the Saudi Stock Exchange, ACWA Power and STC’s Internet services unit.
Offering a share of Elm comes as part of the Public Investment Fund plans to enter deeper into the public markets this year by investing about another $10 billion in listed shares.
The Saudi benchmark index has jumped 9% this year, extending its gains in 2021, which amounted to 30%.
Elm was founded as a research company in the 1980s. It has developed several online services for the Saudi government including the Absher platform. It enables residents and citizens to carry out transactions such as paying traffic fines.
The company has set up a system to manage the entry of foreign pilgrims into the kingdom.