IPO Monitor | Al Majed Oud Prices IPO at Top Range, with Institutional Coverage Ratio of 15,646%
Tadawul All Shares Index TASI.SA | 12212.24 | +0.32% |
ALMAJED OUD 4165.SA | 165.60 | -0.48% |
03 September 2024 - Al Majed for Oud Company, a leading Saudi manufacturer and developer of perfume and oud products, has announced the successful completion of the institutional book-building process for its Initial Public Offering (IPO). A total of 7.5 million shares are being offered, representing 30% of the company's 25 million total issued shares.
The Final Offer Price has been set at SAR 94 per share, with an extraordinary institutional coverage ratio of 15,646% of the total offer shares.
Key Information for Investors at Current Stage:
- Final Offer Price: The IPO price has been set at SAR 94 per share.
- Institutional Book-Building Success: The institutional portion was oversubscribed by 156.5 times.
- Retail Subscription Period: The one-day retail subscription period will begin on Sunday, 15 September 2024.
- Lock-Up Period for Substantial Shareholders: Major shareholders will be subject to a 6-month lock-up period, starting from the first day of trading on the Saudi Exchange.
Waleed Al Majed, Managing Director and CEO of Al Majed for Oud Company, emphasized that the high level of oversubscription highlights the market's confidence in the company's long-standing heritage and strategic growth vision. He also reaffirmed the company's commitment to innovation and sustainable growth.
Investor Groups:
- Institutional Investors (Tranche A): Includes investment funds, companies, GCC corporate investors, and qualified foreign investors. Up to 100% of the shares are allocated to this group but may be reduced to 80% if there is enough demand from individual investors.
- Retail Investors (Tranche B): Includes Saudi nationals and certain eligible non-Saudi residents. They are allocated up to 20% of the shares (1.5 million shares).
Offering Timetable
| Expected Offering Timetable | Expected Offering Timetable Date |
|---|---|
| Offering Period for Participating Parties and Book Building Period | A period of five days, starting from Sunday, 21/02/1446H (corresponding to 25/08/2024G) and closing at the end of Thursday, 25/02/1446H (corresponding to 29/08/2024G). |
| Deadline for submission of Subscription Forms by Participating Parties based on the initial allocation of Offer Shares | On Sunday, 05/03/1446H (corresponding to 08/09/2024G). |
| Deadline for payment of subscription money by Participating Parties based on their initially allocated Offer Shares | On Tuesday, 07/03/1446H (corresponding to 10/09/2024G). |
| Submission Period for Individual Investors | A period of one day only, on Sunday, 12/03/1446H (corresponding to 15/09/2024G). |
| Deadline for submission of Retail Subscription Forms and payment of the subscription monies by Individual Investors | On Sunday, 12/03/1446H (corresponding to 15/09/2024G). |
| Announcement of final Offer Shares allotment | On Thursday, 16/03/1446H (corresponding to 19/09/2024G). |
| Refund of excess subscription monies (if any) | On Tuesday, 21/03/1446H (corresponding to 24/09/2024G). |
| Expected trading commencement date for the Shares | Trading of the Offer Shares on the Exchange is expected to commence after all relevant legal requirements and procedures have been fulfilled. Trading will be announced in local newspapers and on the Saudi Exchange website (www.saudiexchange.sa). |
Previous News:
IPO Monitor | Al Majed for Oud Kicks Off IPO with SAR 90-94 Price Range
IPO Monitor | Overview for The Next IPO in Saudi Market: Al Majed for Oud Company
Read the full explanation of the two Investor Groups:
The Offer Shares will be listed and traded on the Main Market of the Saudi Exchange following the completion of the IPO and listing formalities with both the CMA and the Saudi Exchange.
The Company’s substantial shareholders will be subject to a lock-up period of 6 months, which will begin from the commencement of trading of the Shares on the Saudi Exchange.
The Offering shall be restricted to the two following groups of investors:
Tranche (A): Participating Parties
This tranche comprises investors eligible to participate in the book-building process in accordance with the Instructions for Book Building Process and Allocation Method in Initial Public Offerings, as issued by the Capital Market Authority. This includes investment funds, companies, qualified foreign investors, GCC corporate investors, and certain other foreign investors pursuant to swap agreements (collectively referred to as the “Participating Parties” and individually as a “Participating Party”).
- The number of Offer Shares provisionally allocated to the Participating Parties effectively participating in the book-building process is 7,500,000 Offer Shares, representing 100% of the Offer Shares.
- In the event there is sufficient demand by Individual Investors (as defined under Tranche B below), the Financial Advisor, in coordination with the Company, may reduce the number of Offer Shares allocated to Participating Parties to a minimum of 6,000,000 Offer Shares, representing 80% of the Offer Shares.
- Initially, 2,250,000 Offer Shares will be allocated to public funds, representing 30% of the total number of Offer Shares. If there is sufficient demand by Individual Investors, the Financial Advisor may reduce the number of Offer Shares allocated to public funds to a minimum of 1,800,000 Offer Shares, representing 24% of the Offer Shares after completion of subscription by Individual Investors.
- Final allocation of the Offer Shares to the Participating Parties will be made through the Financial Advisor following subscription by Individual Investors, as deemed appropriate by the Financial Advisor in coordination with the Issuer, using the discretionary share allocation mechanism.
Tranche (B): Individual Investors
This tranche includes Saudi Arabian nationals, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi person who can subscribe in her own name or in the names of her minor children, provided that she proves she is a divorcee or widow and the mother of her minor children. It also includes any non-Saudi Arabian national residing in the Kingdom and nationals of GCC countries who have a bank account with a Receiving Agent and are eligible to open an investment account with a capital market institution (collectively referred to as "Individual Investors" and individually as an "Individual Investor").
- Subscription by a person in the name of his divorcee shall be deemed invalid. If such a transaction occurs, applicable regulations will be enforced against the person involved.
- If a duplicate subscription is made, the second subscription will be deemed void, and only the first subscription will be accepted.
- A maximum of 1,500,000 Offer Shares, representing 20% of the Offer Shares, shall be allocated to Individual Investors.
- If Individual Investors do not fully subscribe for the Offer Shares allocated to them, the Financial Advisor may reduce the number of Offer Shares allocated to Individual Investors in proportion to the number of Offer Shares subscribed by them.
Qualified Foreign Investors will be permitted to trade in the Shares pursuant to the CMA Rules for Qualified Foreign Financial Institutions Investment in Listed Securities. Non-Saudi individuals living outside the Kingdom and institutions registered outside the Kingdom (referred to as "Foreign Investors") will have the right to acquire an economic benefit in the Shares by entering into Swap Agreements with Capital Market Institutions licensed by CMA to conduct securities business to purchase Shares listed on the Exchange and trade these Shares for the benefit of Foreign Investors. The Capital Market Institutions will remain the legal owners of the Shares subject to the Swap Agreements.
- Reporting by Zaid, Sahm News team
