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The subscription period for retail investors in drugmaker Avalon Pharma’s IPO began yesterday.This comes after institutional the offering was 138.7x oversubscribed. The retail subscription period wraps up on Thursday, 1 February, with some 600k shares on offer.
About the IPO: Earlier this month, Avalon Pharma said it would price its offering at SAR 78 to SAR 82 per share. Avalon intends to sell 6 mn shares, good for a 30% stake in the company, on Tadawul’s main market. Some 90% of the offering is earmarked for institutional investors.
The timeline, according to Avalon’s IPO website:
- Institutional bookbuilding — 14-18 January;
- Institutional + retail subscription — 30 January to 1 February;
- Final allocation of shares — 8 February;
- Refund of excess subscription amounts — 14 February.
About Avalon: The Riyadh-headquartered company develops, makes, and markets a portfolio of consumer health and cosmetic brands, in addition to generic medications. The drugmaker has 70 brands including Alpha Plus, Avalon Care, and Avogain, along with 250 SKUs, according to its intention to float (pdf). Avalon claims a 9% market share in the dermatology and respiratory therapeutic products markets, along with a 45% success rate in the 160 public tenders it has pursued in the past four years.
ADVISORS-Aldukheil Financial Group (AFG) is quarterbacking the transaction as financial advisor and bookrunner, Alinma Investment is lead manager and underwriter, Alinma Bank and SNB are receiving agents, and Mohammed Al-Dabaan and Partners is the legal advisor. KPMG is the financial auditor while Pwc is the financial due diligence advisor, and Euromonitor International is acting as market advisor.
