Cherry Trading will go public and offer a 30% stake in an IPO
Cherry Trading Co. announced today, Oct. 16, its prospectus to offer nine million shares, through an initial public offering (IPO) on the Main Market (TASI). 
The shares represent 30% of the company’s SAR 300 million share capital, divided into 30 million shares, each at a nominal value of SAR 10.
The retail offering will run from Nov. 12-13, while the book-building process will begin on Oct. 26 and end on Oct. 30.
The Saudi market regulator greenlit this offering on June 25.
The subscription is limited to two categories of investors:
Tranche (A) Participating Parties:This tranche includes the parties entitled to participate in the offering process in accordance with the book-building instructions. It includes investment funds, companies, qualified foreign investors, GCC corporate investors, and certain other foreign investors pursuant to swap agreements.
The number of shares allocated to this tranche is nine million shares, representing 100% of the shares on offer. The final allocation will take place after the retail offering completion. The lead manager reserves the right to scale back the number of shares for participating parties to a minimum of 7.2 million shares, representing 80% of the total offering shares.
Tranche (B) Retail Subscribers:This tranche includes natural Saudi individuals, non-Saudi residents, and GCC nationals. To be eligible, they must have an investment account and an active portfolio with a receiving agent and must also be qualified to open an investment account with a financial market institution. The maximum number of shares allocated to this tranche is 1.8 million, representing 20% of the total.
Cherry Trading was founded in 1980 as a sole proprietorship owned by Mohammed Abdullah Turki Al-Dhayan. It was later transformed into a limited liability company, and in 2020 became a closed Saudi joint-stock company based in Riyadh. The company operates in car-rental services—covering both long-term and short-term leasing—and vehicle sales.
Company Profile
Company
Cherry Trading Co.
Core Activities
Car rentals
Capital
SAR 300 mln
Number of Shares
30 mln
Share Par Value
SAR 10
IPO Summary
Offering Percentage
30%
No. of Offered shares
9 mln
Total No. of Offer Shares to Retail Investors
1.8 mln (20% of total shares offered)
IPO Minimum Limit (Participating Entities)
100,000 shares
IPO Minimum Limit (Retail Investors)
10 shares
IPO Maximum Limit (Participating Parties)
1.49 mln shares
IPO Maximum Limit (Retail Investors)
250,000 shares
Offering Period
Nov. 12-13
Final Allocation
Nov. 19 or earlier
Surplus Refund (if any)
Nov. 20 or earlier
Company Shareholders
Shareholders
Before IPO
After IPO
Number of Shares
(mln)
Ownership (%)
Number of Shares
(mln)
Ownership (%)
Saudi Edarah Holding Company
29.55
98.50 %
20.68
68.95 %
Abdulaziz Saleh Mohammed AlSowail
0.45
1.50 %
0.32
1.05%
Public
—
—
9.00
30.0 %
Total
30.00
100 %
30.00
100 %
Additional Information
Financial Advisor Lead Manager
BSF Capital
Receiving Agents
Derayah Financial, Alinma Capital, Al Rajhi Capital, SNB Capital, Riyad Capital, ANB Capital, Alistithmar Capital, AlJazira Capital, GIB Capital, Alkhabeer Capital, SAB Invest, Sahm Capital, BSF Capital, Yaqeen Capital, Albilad Capital, Musharaka Capital, EFG-Hermes, and Awaed Capital
Cherry Trading will go public and offer a 30% stake in an IPO
Cherry Trading Co. announced today, Oct. 16, its prospectus to offer nine million shares, through an initial public offering (IPO) on the Main Market (TASI).
The shares represent 30% of the company’s SAR 300 million share capital, divided into 30 million shares, each at a nominal value of SAR 10.
The retail offering will run from Nov. 12-13, while the book-building process will begin on Oct. 26 and end on Oct. 30.
The Saudi market regulator greenlit this offering on June 25.
The subscription is limited to two categories of investors:
Tranche (A) Participating Parties:This tranche includes the parties entitled to participate in the offering process in accordance with the book-building instructions. It includes investment funds, companies, qualified foreign investors, GCC corporate investors, and certain other foreign investors pursuant to swap agreements.
The number of shares allocated to this tranche is nine million shares, representing 100% of the shares on offer. The final allocation will take place after the retail offering completion. The lead manager reserves the right to scale back the number of shares for participating parties to a minimum of 7.2 million shares, representing 80% of the total offering shares.
Tranche (B) Retail Subscribers:This tranche includes natural Saudi individuals, non-Saudi residents, and GCC nationals. To be eligible, they must have an investment account and an active portfolio with a receiving agent and must also be qualified to open an investment account with a financial market institution. The maximum number of shares allocated to this tranche is 1.8 million, representing 20% of the total.
Cherry Trading was founded in 1980 as a sole proprietorship owned by Mohammed Abdullah Turki Al-Dhayan. It was later transformed into a limited liability company, and in 2020 became a closed Saudi joint-stock company based in Riyadh. The company operates in car-rental services—covering both long-term and short-term leasing—and vehicle sales.
Company Profile
Company
Cherry Trading Co.
Core Activities
Car rentals
Capital
SAR 300 mln
Number of Shares
30 mln
Share Par Value
SAR 10
IPO Summary
Offering Percentage
30%
No. of Offered shares
9 mln
Total No. of Offer Shares to Retail Investors
1.8 mln (20% of total shares offered)
IPO Minimum Limit (Participating Entities)
100,000 shares
IPO Minimum Limit (Retail Investors)
10 shares
IPO Maximum Limit (Participating Parties)
1.49 mln shares
IPO Maximum Limit (Retail Investors)
250,000 shares
Offering Period
Nov. 12-13
Final Allocation
Nov. 19 or earlier
Surplus Refund (if any)
Nov. 20 or earlier
Company Shareholders
Shareholders
Before IPO
After IPO
Number of Shares
(mln)
Ownership (%)
Number of Shares
(mln)
Ownership (%)
Saudi Edarah Holding Company
29.55
98.50 %
20.68
68.95 %
Abdulaziz Saleh Mohammed AlSowail
0.45
1.50 %
0.32
1.05%
Public
—
—
9.00
30.0 %
Total
30.00
100 %
30.00
100 %
Additional Information
Financial Advisor Lead Manager
BSF Capital
Receiving Agents
Derayah Financial, Alinma Capital, Al Rajhi Capital, SNB Capital, Riyad Capital, ANB Capital, Alistithmar Capital, AlJazira Capital, GIB Capital, Alkhabeer Capital, SAB Invest, Sahm Capital, BSF Capital, Yaqeen Capital, Albilad Capital, Musharaka Capital, EFG-Hermes, and Awaed Capital
