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Al Majed Oud is guiding on a price range of SAR 90-94 per share for its IPO on Tadawul’s main market, it said in a post on X. The perfume maker is planning to sell a 30% stake in a secondary share sale that will see all six substantial shareholders sell down their positions to 70% of the company’s total capital, down from 100%. The story got ink in Bloomberg.
Market cap + proceeds: At the top end of the range, the transaction would give the company a market cap of up to SAR 24 bn at listing, and raise SAR 705 mn in proceeds. Some SAR 25 mn of IPO proceeds will go towards covering costs associated with the offering including advisory, bookbuilding, legal, auditing, marketing, and other fees. The selling shareholders will divide the rest of the proceeds on a pro rata basis.
The subscription period for institutional investors kicked off yesterday and runs until this Thursday, 29 August. The retail subscription window will open Sunday, 15 September, with final share allocations to be announced on Thursday, 19 September.
The breakdown: Institutional investors are being allotted 100% of the offering, but the financial advisor can reduce that to 80% and allocate 20% of the offering to retail investors “if there is sufficient demand” during the retail subscription window. Public funds — which are counted as institutional investors — will be earmarked 30% of the offering, which may be rolled back to 24% if demand falls short.
Lock-up period: Major shareholders are restricted from selling their shares for a six-month period beginning with the start of trading. The company is also not allowed to issue or list any additional shares of the same category for six months after trading begins.
ADVISORS- BSF Capital is financial advisor and lead manager, while Baker McKenzie is providing counsel to the issuer. Stat is counsel to the financial advisor, underwriter manager, institutional subscription manager, and lead underwriter. PwC is running financial due diligence, while Euromonitor International is the market study advisor and BDO Dr. Mohamed Al Amri & Co is the independent financial auditor.
