landing

TALCO is considered a regional leader in the aluminum production and finishing sector, boasting a market share of 23% of total production of the aluminum sector in the Kingdom in 2022G. However, the Company's commitment to developing the latest technologies for extruded aluminum allowed it to establish a strong presence in the market at the regional level. The company has been able to increase its production capacity to 60,000 MT per annum. The Company adheres to the quality management system ISO 9001-2008, which was upgraded to ISO 9001-2015 within just six months, which enables it to efficiently apply international standards and classification, such as BSI, ASTM, EN and Saudi Standards (SASO).

Suliman Saleh Nasser Al-Oufi

Suliman Saleh Nasser Al-Oufi

Group CEO

Our strategy is based on three main axes: expansion into new markets, research, development and innovation, and sustainability. TALCO has witnessed rapid development in recent years, achieving a compound annual growth of 23% from 2020 to 2023, and its revenues reached 671 million Saudi riyals in 2023 with a net profit margin of 12%, which reflects the strength of its business model and operational efficiency.

Suliman Saleh Nasser Al-Oufi

Group CEO

Pioneers of Shaping the Framework of the Future

Al Taiseer Group TALCO Industrial Company is characterized by an integrated business model that enables it to provide comprehensive and integrated solutions to the needs of its customers, from aluminum products and processing to the production of powder coatings and then to the production of resins, plastics, aluminum accessories, weatherstrip, dust suppressants, and yarn. To achieve this integration, the business of Alwan Gulf Polyester Powder Coating (“Alwan) and Al-Fattouh Company for Alum. Accessories & Yarn (“Alfa”) were merged.

Number of the Company's factories

0

Factories

Manufacturing facilities exceeding

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Square Meters

Production capacity

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Metric Tons

Talco exports its products

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Countries

Team Members

0

Employees

Vision

To establish an integrated business model to be one of the largest industrial groups in the Kingdom of Saudi Arabia.

Mission

To maintain continuous growth and provide the best quality and service through our employees, equipment and the latest technology.

Our Strategy

The Company’s strategy was founded on the basis of continuous growth and maximising value for shareholders, taking into account the interests of all stakeholders. This strategy is based on a clear vision, mission and core values that emphasise innovation, customer satisfaction and long-term success. The Company’s key strategic pillars are as follows:

Enhancing operational efficiency and cost management by optimally utilising resources and periodically reviewing the organisation’s supply chain. In addition, the Company seeks to shift its product portfolio towards sectors that achieve better profit margins and generate sustainable growth.

The Company aims to expand and diversify its product and service offerings to capitalise on new market opportunities and mitigate the risks associated with focusing on one sector or market. The Company seeks to create global strategic partnerships that enhance its market position and enable it to explore neighbouring markets in order to enhance export sales outside the Kingdom.

The Company is dedicated to promoting a culture of innovation and continuous learning, ensuring the ability of its team to adapt to technical developments in the sector and develop industrial skills. The Company is keen to develop new products and services to stay ahead of market trends and maintain its leading position in the sector, ensuring that the diverse needs of its customers are met, along with building longer relationships that achieve sustainable growth goals.

The Company seeks to provide raw materials under long-term agreements, thus ensuring stable supply even during volatile market conditions. This strategy contributes to mitigating the risks associated with fluctuations in raw material costs, which would contribute to achieving more predictable financial performance and better cost management, allowing the Company to maintain competitive pricing for its customers while ensuring the profitability and sustainability of its operations.

The Company is committed to sustainable practices and environmental stewardship by evaluating and improving its operations, seeking ways to reduce waste, maintain resources and reduce energy consumption, as well as decrease carbon emissions and contribute to a more sustainable future. The company obtained the C2C Silver Certification and the International EPD, which has established the Company's position in its sectors and will raise operational excellence.

Company Segments

The Company’s three principal business segments consist of the following:
Alwan Company

Aluminum

The Company designs, manufactures and markets a diverse range of aluminum products to a broad range of clients. The aluminum products segment consists of sub-segments, such as aluminum extrusions (various aluminum alloys) mill finish, anodised aluminum, powder coated aluminum, anodic treatment - powder coated aluminum (seaside).

Alwan Company

Thermoset Powder Coating

The Company manufactures and markets an extensive range of thermoset powder coating products catering to a broad range of clients. The thermoset powder coating products segment consists of sub-segments, such as polyester powder, epoxy powder, super durable powder and metallic powder products.

Alwan Company

Accessories

The Company designs, manufactures and markets a wide variety of accessories to a broad range of clients. The accessories segment consists of sub-segments, such as weatherstrip, polypropylene yarn, strip brush/rubber, rubber gaskets from PVC and TPV, plastic injection moulded components, plastic bags and sheets and printing wrapping films products.

TALCO in Figures

Revenues for Financial Year 2023

671

million Saudi riyals

Revenue CAGR

23%

2020 - 2023

Production Capacity for Aluminum Extrusion and Shaping

60

thousand metric tons

Production Capacity of Powder Coating

6.5

thousand metric tons

Production Capacity of Aluminum Accessories

88

million linear metres

Customer Base More than

1700

customers

Total Assets

660

million Saudi riyals

Net Income

80

million Saudi riyals

Earnings per Share 2023

2

Saudi riyals

Key Historical Changes and Events

1976

The Company began its work in 1976G as a branch of a sole establishment, Al-Fattouh Trading Establishment, owned by Mr Kamel Ibrahim Ali Al-Fattouh.

1994

Started production for aluminum sectors.

2000

Started production for anodising.

2006

Increased the production capacity of powder coating products by 33.0 per cent. to 6,000 metric tonnes.

2008

The Company was established as a closed joint stock company under the name of “Al Taiseer Aluminum Company (TALCO).”

2014

The Company’s share capital was increased from one hundred million Saudi Arabian Riyals (SAR 100,000,000) to two hundred million Saudi Arabian Riyals (SAR 200,000,000), through the capitalisation of retained earnings and Shareholders’ accounts.

2015

Increased aluminum extrusion presses from two to six presses, which helped increase the production lines of aluminum profiles.

2020

Gulf Polyester Powder Production Company with all its branches, assets, rights, liabilities, and responsibilities merged with the Company and was converted into a branch of the Company.

2020

Al-Fattouh Aluminum Accessories and Isolation Lines Company with all its branches, assets, rights, liabilities, and responsibilities merged with the Company and was converted into a branch of the Company.

2021

The Company’s name changed to “Al Taiseer Group TALCO Industrial Company” and its capital was increased from two hundred million Saudi Arabian Riyals (SAR 200,000,000) to three hundred and fifty million Saudi Arabian Riyals (SAR 350,000,000) through the capitalisation of retained earnings and the statutory reserve.

2022

The Company’s share capital was increased from three hundred and fifty million Saudi Arabian Riyals (SAR 350,000,000) to four hundred million Saudi Arabian Riyals (SAR 400,000,000) through the capitalisation of the part of retained earnings and the statutory reserve.

Key Historical Changes and Events

1976

The Company began its work in 1976G as a branch of a sole establishment, Al-Fattouh Trading Establishment, owned by Mr Kamel Ibrahim Ali Al-Fattouh.

1994

Started production for aluminum sectors.

2000

Started production for anodising.

2006

Increased the production capacity of powder coating products by 33.0 per cent. to 6,000 metric tonnes.

2008

The Company was established as a closed joint stock company under the name of “Al Taiseer Aluminum Company (TALCO).”

2014

The Company’s share capital was increased from one hundred million Saudi Arabian Riyals (SAR 100,000,000) to two hundred million Saudi Arabian Riyals (SAR 200,000,000), through the capitalisation of retained earnings and Shareholders’ accounts.

2015

Increased aluminum extrusion presses from two to six presses, which helped increase the production lines of aluminum profiles.

2020

Gulf Polyester Powder Production Company with all its branches, assets, rights, liabilities, and responsibilities merged with the Company and was converted into a branch of the Company.

2020

Al-Fattouh Aluminum Accessories and Isolation Lines Company with all its branches, assets, rights, liabilities, and responsibilities merged with the Company and was converted into a branch of the Company.

2021

The Company’s name changed to “Al Taiseer Group TALCO Industrial Company” and its capital was increased from two hundred million Saudi Arabian Riyals (SAR 200,000,000) to three hundred and fifty million Saudi Arabian Riyals (SAR 350,000,000) through the capitalisation of retained earnings and the statutory reserve.

2022

The Company’s share capital was increased from three hundred and fifty million Saudi Arabian Riyals (SAR 350,000,000) to four hundred million Saudi Arabian Riyals (SAR 400,000,000) through the capitalisation of the part of retained earnings and the statutory reserve.

Certificates and Awards Obtained by the Company as of the Date of this Prospectus

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Offering Information

The Offering will consist of twelve million (12,000,000) Offer Shares with a fully paid nominal value of ten Saudi Arabian Riyals (SAR 10) per share. The Offer Shares represent 30 per cent. of the Company’s share capital.

Expected Offering Timetable Date
Bidding and Book-Building Period for Participating Entities Commencing on Monday 12 Thul-Qi’dah 1445H (corresponding to 20 May 2024G), until the end of Thursday 15 Thul-Qi’dah 1445H (corresponding to 23 May 2024G).
Deadline for Submission of Subscription Application Forms Based on the Number of the Offer Shares Provisionally Allocated for the Participating Entities Wednesday 21 Thul-Qi’dah 1445H (corresponding to 29 May 2024G).
Subscription Period for Individuals A period of two (2) days starting on 20 Thul-Qi’dah 1445H (corresponding to 28 May 2024G) till 4 pm in 21 Thul-Qi’dah 1445H (corresponding to 29 May 2024G).
Deadline for Payment of the Subscription Amount by Participating Entities Based on their Provisionally Allocated Offer Shares Wednesday 21 Thul-Qi’dah 1445H (corresponding to 29 May 2024G).
Deadline for Submission of Subscription Application Forms and Payment of the Subscription Amount by Individual Investors 4 pm on Wednesday 21 Thul-Qi’dah 1445H (corresponding to 29 May 2024G).
Announcement of the Final Allocation of the Offer Shares On or before 25 Thul-Qi’dah 1445H (corresponding to 02 June 2024G).
Refund of Excess Subscription Monies (if any) On or before 25 Thul-Qi’dah 1445H (corresponding to 02 June 2024G).
Expected Commencement Date for Trading the Shares on the Exchange Trading of the Company’s Shares on the Exchange is expected to start after the completion of all of the relevant legal requirements and procedures. The trading commencement date of the Shares will be announced in local newspapers and Tadawul’s website (www.saudiexchange.sa).

Frequently Asked Questions

Al Taiseer Group TALCO Industrial Company has been operating in the industrial sector for more than 45 years. It is considered one of the most prominent industrial companies specialized in the production and manufacture of aluminum products, powder coatings, aluminum accessories, and yarn.

What is the purpose of the public offering?

By offering a portion of its shares for public subscription, the Company aims to increase the level of governance to maintain business sustainability, in addition to enabling the Company to benefit from future growth opportunities.

This Offering is restricted to the following groups of Investors:

Tranche (A): Participating Parties


Comprising the parties entitled to participate in the book-building process as specified under the Book-Building Instructions, including investment funds, companies, Qualified Foreign Investors, GCC Corporate Investors and certain other Foreign Investors pursuant to Swap Agreements. Participating Entities will provisionally be allocated twelve million (12,000,000) Offer Shares, representing 100.0 per cent. of Offer Shares. The final allocation for the Participating Entities will be made upon the expiry of the Individual Investors’ subscription period, using the discretionary allocation mechanism. As a result, some of the Participating Entities may not be allocated any Offer Shares. If there is sufficient demand by Individual Investors, the Bookrunner in coordination with the Company shall have the right to reduce the previously allocated Offer Shares to Participating Entities to ten million and eight hundred thousand (10,800,000) Offer Shares, representing 90.0 per cent. of the total Offer Shares. Initially, three million six hundred thousand (3,600,000) ordinary shares will be allocated to the public funds tranche, representing thirty per cent. of the total number of Offer Shares, in the event that there is sufficient demand from the public funds tranche, noting that in the event that there is sufficient demand from Individual Investors in the Offer Shares, the Bookrunner has the right to reduce the number of shares allocated to public funds to three million two hundred and forty thousand (3,240,000) ordinary shares as a minimum, representing twenty-seven per cent. of the total number of Offer Shares after completing the Individual Investors process.

Tranche (B): Individual Investors


Comprising Saudi Arabian natural persons, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi person who can subscribe for her own benefit or in the names of her minor children, on the condition that she proves that she is a divorcee or widow and the mother of her minor Saudi Arabian children, as well as any non-Saudi natural persons resident in the Kingdom or GCC natural persons, in each case who have a bank account with a Receiving Agent and the right to open an investment account with a Capital Market Institution. A subscription for Offer Shares made by a person in the name of his divorced wife shall be deemed invalid and the applicant shall be subject to the sanctions prescribed by law. If a duplicate subscription is made, the second subscription will be considered void and only the first subscription will be accepted. A maximum of one million and two hundred thousand (1,200,000) Offer Shares, representing ten per cent. of the total Offer Shares shall be allocated to Individual Investors. If the Individual Investors do not subscribe in full to the Offer Shares allocated to them, the Bookrunner in coordination with the Company may reduce the number of Offer Shares allocated to Individual Investors in proportion to the number of Offer Shares subscribed by them.

The minimum subscription for individual investors is 10 shares and the maximum is 250,000 shares per individual investor.

Yes, there is a Lock-up Period for selling the Company’s shares for a period of six months from the date of the start of trading in the Saudi Capital Market, for Substantial Shareholders who own five percent or more of the Company’s shares.

1.2 million shares will be allocated to individual investors, representing 10% of the total shares offered.

The proceeds of the offering will be distributed after deducting the offering expenses to the selling shareholders, and the Company will not receive any part of the net proceeds of the offering.

It is expected that the Company's shares will begin trading in the market within a short period after the completion of the share allocation process

Financial Advisor, Lead Manager, Bookrunner and Underwriter

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Receiving Agents

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alrajhi bank
riyad bank