IPO Monitor | Shalfa plans to sell 15% stake in Nomu IPO after securing CMA approval in June
Parallel Market Capped Index (NomuC) NOMUC.SA | 31311.11 | -0.42% |
Sahm Capital is delighted to announce our participation in the first equity public offering we are involved in on the Saudi Nomu parallel market. Shalfa Facilities Management Co. published the prospectus to offer 630,000 shares, or 15% of its share capital, on the Nomu-Parallel Market.
| Company Profile | |
| Name | Shalfa Facilities Management Co. |
| Market | Nomu |
| Core Activities | Facility management solutions and environmental services |
| Capital | SAR 42 mln |
| Number of Shares | 4.2 mln |
| Par Value | SAR 10/share |
| IPO Summary | |
| Issue Percentage | 15% |
| Number of Shares Offered | 630,000 |
| Minimum Subscription Limit | 10 shares |
| Maximum Subscription Limit | 209,990 shares |
| IPO Period | Oct. 20, 2024 |
| Final Allocation | Oct. 31, 2024 |
| Surplus Refund (If any) | Nov. 4, 2024 |
| Additional Information | |
| Financial Advisor & Lead Manager | Value Capital |
| Receiving Banks | Al Rajhi Capital, Albilad Capital, Riyad Capital – SNB Capital, Alistithmar Capital, Alinma Investment, AlJazira Capital, ANB Capital, SAB Invest, Derayah Financial, Saudi Fransi Capital, Alkhabeer Capital, Yaqeen Capital, Sahm Capital |
Founded in September 2008 and headquartered in Riyadh, Shalfa provides a diverse range of services including facility management solutions, environmental services, project management, and associated commercial activities. Its extensive operational capabilities encompass wastewater treatment, municipal and hazardous waste collection, recycling, and transportation of waste, as well as facility maintenance, cleansing services, and road cleaning.
The company saw a 10% increase in H1 2024 net profits to SAR 10 million, driven by a 27% spike in revenue, despite a gross margin dip from 17% to 15% due to higher costs. Operating margin fell to 9%, and net profit margin to 7% amid rising expenses, though shareholders’ equity grew to SAR 71.63 million from SAR 57.99 million year-on-year.
In a move that showcases our firm’s commitment to innovative and forward-thinking partnerships, it is noteworthy that the offering, restricted to qualified investors, will represent a 15% stake in Shalfa Facilities Management on the Nomu parallel market. The retail offering is scheduled from October 20 to 28, with the subscription details stipulating that orders for the IPO can be placed between Sunday, October 20 and Monday, October 28. Final allocations are to be set by Thursday, October 31, with any excess subscription fees due to be refunded by the following Monday, November 4.
The trio of substantial shareholders—Mohamed Abdullah Ibrahim, Abdullah Mohamed Ibrahim, and Fahd Mohamed Ibrahim—are set to reduce their collective stake from 100% to 85% post-IPO, with each shareholder retaining an equal proportion of 28.3%. IPO-related expenses will be covered using SAR 2.5 million of the proceeds, while the remaining funds will be allocated to the selling shareholders. Additionally, they will be subject to a lock-up period of 12 months, starting from the initiation of trading
Read the full Prospectus
