Al Majed for Oud seeks to raise approximately USD 188 million by listing 30% of its shares on the Saudi main stock market “TASI”.
Major IPO
The company has set the initial public offering (IPO) price range for 7.5 million shares at between SAR 90 and SAR 94 per share.
This means it will raise between SAR 675 million and SAR 705 million (USD 187.5 million).
The final offering price for the IPO will be determined after the completion of the book-building process (institutional subscription).
So what
The company’s IPO, which specializes in the manufacturing and development of Oud and fragrance products, was oversubscribed within a few hours of the opening of the book-building process on Sunday.
Institutional investors fully covered the order book, according to sources cited by Bloomberg.
The offer period and book-building process for institutional investors will remain open until August 29.
Meanwhile, retail investors will be able to submit offers on September 15 for one day.
Al Majd for Oud has hired BSF Capital, the investment banking arm of Banque Saudi Fransi (BSF), for the offering.
Claps Class
Oud, one of the rarest natural resources in the world, is an intensely fragrant oil extracted from the resin of the Aquilaria tree, which is indigenous to Southeast Asia. Oud perfume is a traditional Middle Eastern fragrance.
Now what
The stock exchange is expected to welcome another Saudi perfume company, dubbed “Arabian Oud”.
The company has reportedly tapped Emirates NBD Capital and SNB Capital to manage the potential offering, according to Bloomberg.
It is worth noting that the Saudi market has seen several IPOs this year, most notably the secondary offering of oil giant Aramco, valued at USD 12 billion.
It was the ‘largest stock sale’ globally this year.
Additionally, Arabian Mills” plans to offer more than 15 million shares on Tadawul, but has not yet disclosed its IPO price range.
