Riyadh-based Avalon Pharma is the next in a long list of potential new listings after it revealed its plans to proceed with an initial public offering (IPO) and the listing of its ordinary shares on the main market of the Saudi Exchange.
The Capital Market Authority (CMA), on Saturday, approved Middle East Pharmaceutical Industries Company’s application for the offering of 6 million shares, representing 30 per cent of the Company’s issued share capital, by way of a sale of existing shares by selling shareholders.
The final offer price of the Offer Shares will be determined at the end of the book-building period, which will commence on January 14, 2024 until January 18, 2024, the company said in a statement.
• The IPO of Avalon Pharma consists of an offer of 6 million ordinary shares, representing 30 per cent of the company’s issued share capital of 20 million shares.
• The offer shares will be offered for subscription to participating parties and individual investors. The number of offer shares to be initially allocated to participating parties is 6 million offer shares representing 100 per cent of the total offer shares.
• If there is sufficient demand by individual investors, the number of shares initially allocated to participating parties will be reduced to 5.4 million shares, representing 90 per cent of the total offer shares.
• The final offer price will be determined at the end of the book-building process, and before the beginning of the subscription period for individual investors.
Commenting on the company’s listing plans, Ahmed Tabbaa, Founder and Chairman of Avalon Pharma said: “When I look back on the journey of our business over the last 25 years, I am delighted with the progress that we have made in becoming a leading consumer pharmaceutical company in the Kingdom of Saudi Arabia. In listing on the Saudi Exchange, we are now able to capture future growth and provide an opportunity for a greater number of stakeholders to share in our success.”
Mohammed Maher AlGhannam, MD and CEO of Avalon Pharma, added: “Since its foundation, the Company has built a reputation through the quality of its products and as one of the fastest growing pharmaceutical companies in Saudi Arabia. The market within the Kingdom is changing rapidly and we are well placed to capture future growth across the region as we have shown over the years through our ability to address the market needs.”