RIYADH: Abdulaziz & Mansour Ibrahim AlBabtain Co. plans to proceed with an initial public offering to list its shares on the parallel market Nomu, Yaqeen Capital, its Financial Advisor and Lead Manager, said in a bourse filing.

The company, known as AlBabtain Food, plans to offer 544,000 ordinary shares, representing 16 percent of its SR34 million ($9 million) capital, divided into a total of 3.40 million shares.

AlBabtain Food said in a statement that its board recommended the shares offering on Sep. 15 to the company’s shareholders, and obtained full approval during a general assembly meeting on Sep. 18.

The Saudi Exchange gave its green light for the company’s request to list on Nomu on Nov. 15 of last year.

On Jun. 29, the Capital Markets Authority granted approval for the AlBabtain listing on Nomu-Parallel Market.

The price subscribers will pay to purchase the shares will be determined after the book-building period has been completed, AlBabtain Food said.

The Riyadh-based firm plans to conduct a three-day offering period beginning on Sunday, Sept. 25, and concluding on Wednesday, Sept. 28.

The minimum number of shares that can be subscribed by qualified investors is 10 shares and the maximum number is 169,990 shares.

The final allocation is due on Oct. 3, and the surplus refund on Oct. 9.

It is expected that the trading of the shares of the company on the parallel market will begin after all the shares have fulfilled the necessary requirements and completed statutory requirements.

It said that any further updates regarding the dates on which the stock trades will be held will be announced on the Saudi Stock Exchange.

AlBabtain Food posted a 13 percent growth in net profit to reach SR16 million in 2021 compared to SR9 million the company made in the previous fiscal year.

This profit growth was coupled with an 80 percent leap in sales and revenue to hit SR128 million in 2021 as opposed to SR71 million in the previous year.

Founded in 1998 by the AlBabtain family, AlBabtain Food aims to provide raw materials to the Saudi market in order to meet rising demand. It manufactures a range of products including bread, pastries, and ice cream.

The general strategy of the company is to be ahead of the curve and upgrade its products and services on a constant basis in order to continue to provide everything that is innovative and useful to the food industry.

The company’s general strategy also includes opening direct sales branches to customers and expanding coverage of the Kingdom’s regions, attracting important food agencies and entering into supplier companies.

AlBabtain Food in Saudi Arabia has eleven branches spread across the kingdom, making it able to provide its customers with a high level of services in the region.