RIYADH: Saudi Mohammed Hasan Al Naqool Sons Co. directly listed on Saudi Arabia’s parallel market Nomu on Wednesday as it seeks to ramp up borrowing for expansion.
The cement company is seeking to increase leverage after paying down debt in 2020, and because the cost of borrowing is less than raising capital, Chairman Majed Al Naqool told Al Arabiya.
Listing the company will raise its credibility with banks, but it has no plans to raise capital in the short-term, he said.
Al-Naqool has ready-mix concrete factories in Dammam, and has expanded in Egypt with a factory in the new Al Alamein area, he said.
The company was established in 1984 with a factory for blocks and ready-mix concrete in Safwa for the Dammam-Jubail highway in east of Saudi Arabia.
Nomu is a stock market owned by the Tadawul with lighter listing requirements. Companies need to have a market capitalization of SR10 million ($2.7 million) compared with SR300 million for the main market and need only report earnings every six months instead of quarterly.