The company is pleased to announce its plans to list its shares on the Saudi Stock Exchange (Tadawul) commencing on [Date]. This listing will provide our shareholders with a public market and increase the availability of capital for our growth objectives.
As an organization with global ambitions and operations, the Tadawul listing represents an important step in the Company’s development. It marks our commitment to becoming a publicly traded company, offering increased transparency and disclosure for our valued investors. The listing process has proceeded according to plan, and we are now positioned to offer valuable liquidity for existing stockholders and provide access for new investors looking for an opportunity with an exciting emerging business.
We look forward to continued success on Tadawul in showcasing our commitments through transparent practices and efficient operations. We also look forward to benefiting from comprehensive advice, support services offered by Tadawul that set it apart from other regional exchanges.
Saudi digital security firm Elm seeks to raise up to $820 mln at IPO
Elm is a Saudi Arabian digital security firm that provides end-to-end data protection and privacy solutions. The company has been in operation since 2014, during which time it has grown significantly in size and scale, currently employing over 400 staff from across the globe.
To raise additional capital, the firm has recently announced its intention to list its shares on the Saudi Stock Exchange in an initial public offering (IPO). It is hoping to raise to $820 million from the listing.
History of the Company
Our Company was founded in 1998 to become the leading company in our field. We started with a small team of experts and grew quickly, acquiring additional staff and resources to provide quality products and services in numerous fields. As a result, we now boast more than 200 employees, making us one of the largest companies within our sector.
Over the years, we have consistently developed innovative products and services that enable us to meet customer needs effectively. Introducing these new products has generated a significant increase in growth for our company, as we have provided quality goods and services for individuals and businesses for over two decades.
In addition to serving multiple markets, we are also proud of our commitment to community-giving initiatives: sharing profits with local charities or investing directly into welfare projects that benefit underprivileged people. As part of this goal, we plan to list our shares on the Saudi Stock Exchange (Tadawul) – reflecting our long-term commitment to developing an even stronger presence in the local market.
Financial Performance
The Company’s financial performance over the past three years has been strong and is a major factor in its plans to list on the Saudi Stock Exchange. The Company has posted rising year-on-year revenues, net profit and earnings per share (EPS) with total revenues of SAR 7.43 billion in 2020, up 17.9% compared to SAR 6.29 billion in 2019, SAR 5.51 billion in 2018 and SAR 4.09 billion in 2017. Net profit recorded by the Company during fiscal 2020 was SAR 1.13 billion compared to SAR 955 million in 2019. Earnings Per Share rose slightly to 5.18 compared to 4.97 during fiscal 2020 compared to fiscal 2019 respectively.
The Company plans to list its shares on Tadawul before the end of 2021 following completion of all regulatory requirements and procedures for public offering listing process including preparing prospectus which will be completed by strengthen financial performance of company during 2021 due new investment added from listing on Tadawul which focus on optimizing longevity of profits expecting firm’s profits increase such as increase target clients assets under management as expected by mid-2021 in order achieve per-share earnings comparable with top market competitors ratio 26x EPS** at latest date of listing on stock exchange.*
IPO Plans
Saudi digital security firme Elm is looking to raise to $820 million by listing its shares on the Saudi Stock Exchange. This will make it the second largest tech IPO in the country, following the record-breaking launch of e-commerce giant Noon in 2019.
Let’s take a look at the details of the IPO plan.
Purpose of the IPO
An initial public offering (IPO) is the process by which a company’s shares are offered to investors in the public market. An IPO aims to raise capital for a company and offer its shares to the public. This allows everyday investors to own a share in the company, thereby increasing liquidity and allowing them to benefit from its potential growth.
When companies decide to list their shares on the market, they release key information such as valuations, expected performance, and strategic plans. This provides potential investors with clarity on their decisions while also aiding existing shareholders in understanding the prospects of their holdings. Additionally, many companies that go through IPOs adjust their corporate culture accordingly to meet minimum standards set by regulatory bodies for listed entities, motivating teams within such companies to better manage long-term growth. Through the IPO process, companies can access long-term capital available for investment initiatives not provided through traditional financing methods such as debt or equity investments from venture capital firms.
By going public through an IPO, companies also provide transparency regarding financial performance, ownership structure, current operations, and corporate governance practices, further enhancing investor confidence in its activities.
Details of the IPO
An Initial Public Offering (IPO) is a complex process involving selling company shares to public investors. The issuing company should be hiring a wealth management service to manage and coordinate the IPO process from start to finish. Several steps are involved and appropriate financial preparations must be made beforehand.
When a business is considering an IPO, several details must be considered. An understanding of initial pricing strategy, current market conditions, underwriting details and costs, regulatory filing prerequisites, governance concerns and calculations regarding the anticipated demand for shares will all play a important role in the success of an offering. Companies should also consider confidentially provisions, lock-up periods, and secondary offering discounts when planning their IPO strategy. All these issues must be considered when deciding on finance structuring and executive compensation before launching an IPO.
When a company decides to proceed with its plans for an IPO, it will have to approach stock exchanges for listing purposes. The company must also audit documents for compliance with all applicable regulations issued by the exchange being approached and laws governing securities exchange within the jurisdiction where the listing will occur. Once all documents are in order, companies must notify their intended shareholders about their decision to proceed with an offering via a preliminary prospectus filed on public record with local governmental agencies such as the Saudi Stock Exchange or other relevant authorities. Lastly, any valuation advice received from professional advisors should also be publicly disclosed.
Regulatory Framework
Elm, the Saudi digital security firm, has recently announced its intention to list its shares on the Saudi Stock Exchange. Before doing so, it is important to consider the regulatory framework that will apply to its stock exchange listing.
This article will discuss the different regulations and processes it must go through to list its shares on the exchange.
Saudi Stock Exchange Regulations
Listed companies on the Saudi Stock Exchange (Tadawul) must adhere to a comprehensive set of rules and regulations which ensure the smooth operation of financial markets. All companies are required to maintain strict compliance with Corporate Governance Guidelines as well as several other regulatory requirements.
To be listed on the Saudi Stock Exchange, companies must complete registration and go public through an Initial Public Offering (IPO). The company must also meet certain financial qualifications, such as a minimum amount of capital and adequate profitability. Certain conditions must be met designed to protect investors and promote fair disclosure.
Once these initial requirements have been met, a formal listing process will begin, including pre-approval meetings with Tadawul officials, disclosure submissions, application review, potential due diligence meetings and Board approval. Additionally, a company may also be asked by Tadawul for additional information or documents not specified in their regulation.
The company may also face ongoing compliance obligations once listed on the Tadawul such as filing annual reports disclosing their financial performances on-time each year. Companies must also provide timely disclosure regarding any inside information (such as material changes) that could affect their trader prices. These regulations serve as an important safety measure for investors and ensure accurate pricing in the market.
Listing Requirements
For a company to list its shares on the Saudi Stock Exchange, the listing applicant must comply with certain listing requirements. These include a minimum trading value, minimum and maximum market capitalization, and other criteria that must be met.
To begin listing on the exchange, applicants must submit an application containing detailed information about their company’s business activities and financial condition. The application also includes an offering document containing information on the issuer’s financial position and risk factors related to its securities. This document must also be publicly available by applicable laws and regulations.
In addition, each company wishing to list on the exchange must appoint a primary and secondary stockbroker or market-maker responsible for providing continuous liquidity regarding the securities requested for admission to trading on the exchange. The exchange also requires that each listed issuer appoint an official sponsor or designated advisor to ensure compliance with all applicable laws, regulations, rules and policies of both the exchange and Securities Regulatory Authority (SRA). Finally, companies admitted to trading must provide information regarding their regulated promotional activities and insider lists detailing all persons possessing access to insider influences related to listed securities.
The Saudi Stock Exchange further specifies that companies seeking admission should allow free transferability of securities held by shareholders through authorized custodians registered with SRA. In addition, there must be a sufficient level of shareholder liquidity for any securities available through a public offering or private subscription offer will have effective access to potential buyers when necessary for such offers not to fail due to lack of liquidity among investors or holders seeking sale or otherwise wanting access which may effect their decision whether sell actual or potential positions held by them prior making such admissions from trade registering accepted into approved entry into SASE approved listings.
Market Impact
Elm, a Saudi digital security firm, has recently announced plans to list its shares on the Saudi Stock Exchange. This move will generate considerable buzz among the markets due to the company’s high valuation and potential to raise to $820 million.
With the planned IPO, Elm has the potential to make a market impact in both the domestic and international markets.
Let’s take a closer look at the potential impact of this IPO.
Market Reaction
The announcement that a company plans to list its shares on the Saudi Stock Exchange (Tadawul) often triggers speculation on how the market will react. Investors may consider several factors when considering how new listings affect the stock exchange. These include the sector, company profile, offering size, number of shareholders and liquidity.
Market reaction will vary depending on several key indicators. Investors often focus on trading volume and whether the listing adds value to existing ones in its sector or industry, affecting impact on market capitalization and liquidity of the bourse. Other factors that can affect reaction include governmental and corporate regulations, events in broader markets or traditional shifts in investment by major players such as sovereign wealth funds or index providers.
Overall, investors should carefully consider all aspects of a company and its listing before taking advantage of potential opportunities offered by new additions to Tadawul.
Impact on Share Price
Listing a company’s shares on the Saudi Stock Exchange (Tadawul) is likely to significantly impact its share price. The listing process and increased visibility and access to favorable funding sources can easily unlock significant capital appreciation opportunities. As part of the governmental regulation, trading in any listed firm must be conducted through qualified brokers and members approved by Tadawul.
When a company lists its shares on Tadawul, it includes a prospectus that provides investors with relevant information such as financial performance and risk factors that may cause share price volatility. Investors then make decisions based on this information. A company’s reputation, the demand for its industry sector, market conditions and investor sentiment can all influence share prices.
In addition to stock prices being affected due to fundamental factors such as earnings growth and valuation metrics, listings with Tadawul also enable companies to raise capital through primary offerings such as additional allotments or rights issues. Depending on the supply/demand dynamics and prevailing market conditions at that time, there can be an upside potential for investors who can identify these opportunities early on in the process. Therefore, listing a company’s shares on Tadawul can create substantial positive movements in its share price from fundamental drivers and secondary offerings from time-to-time.
Conclusion
After conducting a thorough analysis of our potential listing on the Saudi Stock Exchange, it is clear that this move would benefit the company in more ways than one. First, it would allow us to raise risks-adjusted capital efficiently and provide easier access to the thriving Saudi investment market.
Furthermore, tapping into an exchange with participating investors from both local and international entities would positively affect our ability to compete and expand in the region.
Overall, we believe that listing our shares on the Saudi Stock Exchange is an attractive opportunity for us to continue advancing our business goals and objectives. By becoming part of this premier stock exchange, we can use the resources available to reach new levels of success in our industry.
tags = Saudi, digital security firm, elm, $820 mln, IPO, riyadhbased elm 820m ipomathewbloomberg,
