Al-Sudais Company for Trade and Transport has appointed Al-Dakheel Financial Group as a financial advisor in preparation for offering the company’s shares in the parallel market “Nomu” through direct listing. The Financial Group stated that it is working with Al-Sudais to complete the regulatory requirements and obtain the approval of the Capital Market Authority to list the company’s shares on the parallel market “Nomu”.
Al-Sudais Company works in the transportation of petroleum products, cement and goods. It is also a certified and qualified transporter for Aramco and Saudi Electricity, and some military sectors.
Ali Al-Hudhaif, CEO of Al-Sudais Transport, said, “The inclusion in the growth market is to support the growth of the company’s business. During the past 5 decades, the company has managed to grow in 3 axes, including geographical coverage, as the company has covered several regions within Saudi Arabia and has 4 centers and the main center is located in the city Riyadh and another location in the eastern region of Dammam, and a site in Yanbu. Al-Hudhaif added, “The timing of the current listing comes in conjunction with several facilities provided by the Capital Market Authority. The direct listing process has become an easy and easy tool for medium and family companies to alleviate many of the conditions that have limited family companies’ desire in particular to tap into the market. The concept of direct listing is new for eastern markets. Al-Awsat and Saudi Arabia is one of the first countries to adopt the system. The listing is not a public offering, but the company is for its owners, and they are directly listed in the market, thus it gives a space for investors to follow the company’s business and this contributes to the growth of its business.
Al-Hudhaif added, “The Saudi transport market is distributed among a large number of carriers, and the small carriers constitute 70% of the market size, and thus the large carriers are limited in number and are based on business with huge companies such as Aramco and SABIC. We expect growth during the coming period related to technology business, which gave positive space for transport companies with The presence of a group of diverse Gulf clients to provide these support services.
“The company achieved a growth of 4% in the first quarter compared to the same period last year. Corona’s impact on the company’s business is limited because the company’s activity lies in support services and the sector has the flexibility to move between a different number of activities and sectors. We still believe that the market is vital and we have space,” Al-Hudhaif said. Great for growth. ” “The company started working on the listing for about 6 months, and the company is targeting the offering in the first quarter of 2021. The appointment of Al Dakhil Group as a financial advisor is due to the company’s long financial experience and that Al Sudais is in the process of completing all the listing requirements in terms of governance and management,” he added.