Subscription begins for Service Equipment’s 720,000-share offering on Nomu

Logo of Service Equipment Co.

Qualified investors began today, April 13, subscribing to 720,000 shares of  Service Equipment Co. on the Nomu-Parallel Market. The price range is set between SAR 80 and SAR 84 per share.

The offering represents 30% of the company’s capital, which stands at SAR 24 million, divided into 2.4 million shares with a nominal value of SAR 10 each.

For More IPOs

The subscription period will run for five business days, ending on Thursday, April 17.

Service Equipment’s share sale marks the eighth IPO on Nomu so far this year, following listings by Alshehili Co. for Metal Industries and ITMAM Consulting Co.  on Jan. 5, Basma Adeem Medical Co. (Smile Care) on Jan. 13, Lamasat Co. on Jan. 20, Ratio Speciality Company for Trading and Hedab Alkhaleej Trading Co. on Feb. 16, and  Future Vision for Health Training Co. on April. 6.

Nomu witnessed 28 IPOs in 2024.

In December 2024, the Capital Market Authority (CMA) approved Service Equipment’s application to offer its shares on Nomu.

The subscription is limited to certain categories of investors, including capital market institutions authorized to act on their accounts, as well as 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 categories include 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).

They also include companies owned by the government, directly or through a portfolio managed by a person authorized to practice management operations. This is in addition to investment funds, companies, and funds established in the GCC countries.

Investors qualified to participate in the subscription include non-resident foreigners who are allowed to invest in Nomu and who meet the requirements stipulated in the guidelines for investment of non-resident foreigners in Nomu.

They also include qualified foreign financial institutions and any legal person entitled to open investment accounts inside the Kingdom and with Edaa.

Natural persons are allowed to open investment accounts inside the Kingdom and with Edaa, provided they fulfill certain criteria.

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.

Natural persons should also have a net asset value of at least SAR 5 million and be working or have worked for at least three years in the financial sector.

They should hold a general certificate in securities dealing, approved by the CMA, and a professional certificate in the field of securities business, approved by an internationally recognized body.

Key background

Service Equipment is a Saudi closed joint-stock company, established as a branch of a sole proprietorship in 1980 and headquartered in Jeddah.

The company’s current activities cover the distribution and marketing of products, supplies, equipment, and related services in the fields of maintenance workshop equipment, hand tools, diagnostic and inspection equipment, oil and lubrication systems, maintenance services, fuel station equipment and accessories, and car wash systems.

According to its commercial register, the company’s activities also include installing machinery and equipment, wholesale trading of transportation equipment (excluding cars, motorcycles, and electric bikes), as well as wholesale and retail trading of industrial machinery and equipment spare parts. This is in addition to retail sales of fuel station equipment and spare parts, including fuel pumps and general storage facilities.