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Perfume maker Al Majed Oud booked more orders than the shares on offer in its Tadawul IPO within hours of the bookbuilding process beginning for institutional investors on Sunday, Bloomberg reports, citing sources it says are familiar with the matter. Institutional investors have until this Thursday, 29 August to place their orders.
REFRESHER- Al Majed Oud is taking a 30% stake to market in a secondary share sale. The company is guiding on a price range of SAR 90-94 apiece, which could see it raise up to SAR 705 mn in proceeds. At the top of the range, the company’s market cap would be SAR 24 bn at listing.
What’s next? Retail investors can place their orders starting Sunday, 15 September. 100% of the offering is currently being allocated to institutional investors, but the financial advisor could allocate 20% to retail investors if there is sufficient demand. The final allocation of shares is slated for Thursday, 19 September.
Use of proceeds + lockup: Some SAR 25 mn of the proceeds will go towards covering IPO-related costs, while the rest will be split among the selling shareholders on a pro rata basis. Major shareholders will not be able to sell down their positions for a six-month period starting from the first day of trading. Meanwhile, the company is not allowed to issue or list any additional shares of the same category during the same period.
ADVISORS- BSF Capital is acting as 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.
