CMA board OKs Saudi Company for Hardware IPO

26/03/2015 07:04 AST

The Capital Market Authority (CMA) board has approved the initial public offering (IPO) of Saudi Company for Hardware (SACO) for 7,200,000 shares representing 30 percent of the company’s share capital.

A portion of the offered shares will be allocated to mutual funds and authorized persons. The company's shares will be offered from April 22 to 28, 2015 once the book-building process is complete.

The company’s prospectus will be published prior to the start of the subscription period, which must include all relevant information that the investor needs to know before making an investment decision, including the share price, company's financial statements, activities and management.

A subscription decision without reading the prospectus carefully or fully reviewing its content may involve high risk. Therefore, it is recommended that investors should carefully read the prospectus, which includes detailed information on the company, the offering and risk factors, thus providing potential investors the ability to evaluate the viability of investing in the offering, taking into consideration the associated risks.

If the prospectus proves difficult to understand, it is recommended that an authorized financial adviser should be consulted prior to making any investment decision.

The CMA stated that its board approval of the offer should never be considered as a recommendation to subscribe in the offering of any specific company. The board's approval of the offer merely means that the legal requirements as per the Capital Market Law and its implementing regulations have been met.

Arab News