عربي

 

IPO TIMELINE

2022

  • Publication of the Prospectus 02 November
  • 16 November Price Announcement
  • Start of Subscription 27 November
  • 01 December End of Subscription
  • Allocation 03 December
  • 06 December Refund

COMPANY OVERVIEW

About Us

Since 2009, and with rapid steps that are racing against technological developments, Meshkati Company has been seeking to provide integrated solutions for professional lighting systems in the Kingdom of Saudi Arabia through high quality products worthy of the customer's trust and satisfy his desires and needs.


Meshkati was established with the aim of becoming the leading source for the latest solutions and safe lighting products and what is related to them. Our business strategy is to consolidate and strengthen our position as a leading company in the field of retailing through various branches, which includes 15 branches around the Kingdom of Saudi Arabia and selling through the website as well as providing products and modern services of high quality at competitive prices.


The implementation of our business strategy is based on a customer-centric approach along with an organizational structure that focuses on strategic goals through a simple distribution of jobs and associated human resources focused on investing in competitive products and reducing costs.

Strategic direction

The first horizon (Expansion of operations in the Saudi market):

  • Expansion by opening new branches in different regions in the Kingdom.
  • Expanding e-commerce through the online store and increasing the sales of this channel.
  • Entering the installation market and start setting up an installation team for the company.
  • Focusing on smart solutions currently offered through the subsidiary.

The second horizon (Opportunities outside the current business model):

  • Purchasing production lines in the Kingdom to start manufacturing and exporting.
  • Increase the franchise for commercial expansion and to enhance the company's reputation.
  • Expansion in the Gulf region.

The third horizon (A great long-term investment):

  • Commercial integration and entry into business within complementary categories.
  • Introducing new products on production lines in the Kingdom.
  • Expansion through virtual store sales and development.

Subsidiaries

Meshkati Solutions for Information Technology Company is the subsidiary company of Meshkati Trading Company, which works in the field of smart products for both the individual and business sectors.

ANNOUNCEMENT DETAIL

 

Meshkati Trading Company (the “Company”) announces the company’s intention to offer (900,000) ordinary shares representing (25%) of the company’s total shares (the “Offering”) for subscription through an initial public offering in the parallel market “Nomu”. The subscription period begins on Sunday 27/11/2022 and ends on Thursday 01/12/2022.

LEADERSHIP MESSAGE

Eng. Mohammed Al-Namlah

CHAIRMAN

Meshkati Company occupies a leading position as one of the leading retail companies in the field of lighting and electricity in the Kingdom of Saudi Arabia, as well as pushing the wheel of economic and social development in Saudi Arabia.

We are committed to our leading role towards achieving Vision 2030, and we look forward to our responsibility to help customers reach high quality products as our employees are making continuous efforts to help in this.

As we continue to strengthen our position at the forefront, we will remain the preferred supplier to our customers with our ambition to provide customers with reliable, more sustainable products at competitive prices and continue to deliver long-term value to our shareholders.


MR. Ibrahim Al-Dahmash

CEO

For more than a decade, Meshkati have contributed to the development wheel by providing its services and business to a wide range of clients to include the public sector, both governmental and semi-governmental, and the private sector represented by major companies and financial institutions.

We seek to be proactive in the field of lighting and electricity services by developing mechanisms and means to ensure the achievement of added value for customers, to enable them to achieve their goals.

In the past years, we have worked to support the goals of the Kingdom of Saudi Arabia and its rational government, and since the launch of Vision 2030, we have focused on contributing to achieving its stated goals by empowering citizens in the labor market through employment, training, and supporting Saudization programs.

In Meshkati, we believe in continuous development and total quality, as we are constantly working on development programs at all levels of business to ensure a positive work environment, reflecting the level of services that are provided with high quality and exemplary efficiency, led by a distinguished work team that has experience and ambition, which contributes to achieving the set goals, which makes us One of the leading companies in the field of lighting and electricity.

We are optimistic that we will represent an added value for all our customers and that we will achieve achievements together to move forward towards a bright tomorrow, God willing, armed with high energy to be in the ranks of the first to serve our generous country.

VALUE PROPOSITION

  • Quality and product guarantee, where quality is a priority for the company.
  • Continuously diversifying and developing the company's products.
  • Providing strong customer service before and after sales.
  • The company has many branches in several cities and regions of the Kingdom.
  • Planning and preparing to provide delivery and installation service.
  • E-commerce through the company's online store.
Number of branches 15
Number of cities 11
Number of brands 6
Number of employees + 150
Number of products + 4,000
Number of clients + 200,000
Average increase in the number of clients 61.42%
Average increase in frequency of purchase 71.31%
Average increase in repeat purchase to number of customers 35.49%
The average increase in the number of bills 36.84%
Average increase in sales value 28.65%

The strengths and competitive advantages of the company

  • Quality and product guarantee, where quality is a priority for the company.
  • Continuously diversifying and developing the company's products.
  • Providing strong customer service before and after sales.
  • The company has many branches in several cities and regions of the Kingdom.
  • Planning and preparing to provide delivery and installation service.
  • E-commerce through the company's online store.

We achieve our main goals

Number of branches 15
Number of cities 11
Number of brands 6
Number of employees + 150
Number of products + 4,000
Number of clients + 200,000

We achieve our sales goals

Average increase in the number of clients 61.42%
Average increase in frequency of purchase 71.31%
Average increase in repeat purchase to number of customers 35.49%
The average increase in the number of bills 36.84%
Average increase in sales value 28.65%

FINANCIAL PERFORMANCE

Revenue

90,843,486

Year 2021

Net Profit

19,470,149

Year 2021

Gross Profit Margin

45.22%

Year 2021

Return on equity

43.29%

Year 2021

Net Profit Margin

21.43%

Year 2021

Revenue

57,055,055

June 2022

Net Profit

10,863,643

June 2022

Gross Profit Margin

45.36%

June 2022

Return on equity

27.76%

June 2022

Net Profit Margin

19.76%

June 2022

FAQ

Q1:Where is Meshkati planning to list?

The shares will be listed on the Saudi Stock Exchange Parallel Market (Nomu).

Q2:Who is eligible to subscribe to the Offering?

1. Capital Market Institutions acting for their own account.
2. Clients of a Capital Market Institution authorized by the Authority to conduct managing activities provided that this Capital Market Institution has been appointed as an investment manager on terms that enable it to make decisions concerning the acceptance of an offer and investment in the Parallel Market on the client’s behalf without obtaining prior approval from the client.
3. The Government of the Kingdom, any government body, any supranational authority recognized by the Authority or the Exchange, and any other stock exchange recognized by the Authority or the Depository Center.
4. Government-owned companies, either directly or through a portfolio managed by a Capital Market Institution authorized to carry out managing activities.
5. Companies and funds established in a member state of the Cooperation Council for the Arab States of the Gulf.
6. Investment Funds.
7. Non-resident foreigners permitted to invest in the Parallel Market and who meet the requirements stipulated in the Guidance Note for the investment of Non-Resident Foreigners in the Parallel Market.
8. Qualified foreign financial institutions.
9. Any other legal persons allowed to open an investment account in the Kingdom and an account at the Depository Center.
10. Natural persons allowed to open an investment account in the Kingdom and an account at the Depositary Center and fulfill any of the following criteria:
a. has conducted transactions in security markets of not less than 40 million Saudi riyals in total, and not less than ten transactions in each quarter during the last twelve months.
b. his/her net assets are not less than 5 million Saudi Riyals.
c. works or has worked for at least three years in the financial sector.
d. holds the General Securities Qualification Certificate, which is recognized by the Authority.
e. holds a professional certificate related to securities business and is accredited by an internationally recognized entity.
11. Any other persons prescribed by the Authority.

Q3:When will the Offering’s price be announced to Investors?

The Offering’s final price was announced on Wednesday, 16/11/2022. For more information, please refer to Offer Price Announcement in the Downloadable section.

Q4:Are there any restrictions for selling my shares following the listing?

Except for the Substantial Shareholders (Who own 5% or more of the Company’s Shares) there will be no implementation of a lock-up period or restrictions on the sale of shares following the listing.

DOWNLOADABLES

  • Prospectus

  • Price Offer Announcement

  • Company Strategy

  • Governance Regulations

HOW TO SUBSCRIBE

Step 1:

Ensure you have an active investment account with the Receiving Entities to invest in the Parallel Market (Nomu)

Step 2:

Subscribe through the electronic channels of the recipients "Al-Rajhi Bank" and "Al-Ahly Financial Company (Al-Ahly Capital)" during the offering period, which begins on Sunday, November 27 2022 AD, until 4:00 pm on Thursday, 01 December 2022 AD.

Step 3:

Upon submitting the Subscription Application, the entire value of the subscribed shares will be deducted from the subscribe account with the Receiving Entities. The funds will be transferred directly to the Escrow Account during the Offering process.

Step 4:

The allocation will be announced by notification no later than Saturday 03 December 2022. The surplus amounts will be refunded by no later than Tuesday 06 December 2022, without commissions or deductions.

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