Al Majed for Oud raises $188m from 30 per cent stake sale, IPO at $25 per share
The final allocation of shares will occur on September 19
Dubai: Al Majed for Oud Co has set the price for its initial public offering (IPO) on the Saudi stock exchange at $25 (Dh91.7) per share, reaching the top of its announced price range of $23.08 (Dh84.7) to $25 (Dh91.7), according to a report by Saudi financial news portal Argaam.com.
The Riyadh-based manufacturer of perfume and oud products will raise $188 million (Dh690 million) by selling 7.5 million shares, representing a 30 per cent stake in the company.
The institutional book-building phase saw an overwhelming demand, with subscriptions oversubscribed by 156.5 times, according to the company's statement.
The retail offering, scheduled for September 15, will include 1.5 million shares, or 20 per cent of the total offering. The final allocation of shares will occur on September 19.
Once the formalities are complete, trading will commence on the main market, also known as TASI.
Proceeds from the IPO will be distributed to the selling shareholders after covering offering expenses, as the company itself will not receive any of the IPO proceeds.
As of December 31, 2023, Al Majed for Oud’s portfolio includes 650 products across 132 brands, with a daily production capacity of 50,000 items. The company operates 286 stores, with 237 located in Saudi Arabia and 49 in other GCC countries.