RIYADH: Methanol Chemicals Company (Chemanol), one of the Kingdom’s market leaders in specialty chemicals, is to launch its initial public offering (IPO) tomorrow. The SR723.6 million offering will last from Aug. 11-20 and present 60.3 million shares to subscribers, representing 50 percent of Chemanol’s total issued share capital.
The IPO is organized by Samba Capital, which is acting as the financial adviser, lead manager and lead underwriter. Samba Capital recently signed agreements with 11 receiving banks representing the Kingdom’s major financial institutions.
Eisa Al-Eisa, Samba Capital CEO and managing director, announced that the share price would be of SR12, including premium. “Subscribers will be able to subscribe through all local banks Kingdomwide. I assure you that Samba Capital and all receiving banks have taken all necessary steps for the IPO in a way that allows subscriptions to take place via different channels such as e-banking, phone banking and ATMs in order to increase ease and flexibility for the subscribers,” he added.
Mazen Allahiq Al-Nuaimi, Chemanol’s managing director, expressed his satisfaction at seeing the completion of the IPO preparations. “This will not have been possible without 19 years of success and achievements, and with this IPO Chemanol is expanding and continuing its journey toward a brighter future with the support of shareholders,” he added.
Established in 1989 with a start-up capital of SR5.5 million ($1.47 million), Chemanol has an impressive track record of growth, performance and won many awards, and is one of the biggest producers of formaldehyde and derivatives. Once the IPO is completed the company’s capital will be SR1.2 billion ($320 million).
Chemanol has 22 production units generating an annual revenue of approximately SR461 million ($123 million).