Al Majid Perfumes Company announced that the offering allocated to individual investors was covered by 821.33% after receiving 1.158 billion riyals to purchase about 1.5 million shares allocated to this category, according to the company’s disclosure today, Wednesday. This means that the company received about 772 riyals for each share offered to individuals, while the offering price is 94 riyals per share.
The company said it would reduce the shares allocated to institutions to 6 million shares, representing 80% of the total shares offered.
The institutional offering was covered by approximately 15,656% of the total shares offered, bringing the company’s pre-trading valuation to SAR 2.3 billion. Al Majid Al Futtaim appointed Banque Saudi Fransi Capital, the investment services arm of Banque Saudi Fransi, to manage the offering.
Al Majed Perfumes was founded in 1956 and now has 300 sales outlets in Saudi Arabia, Kuwait, the UAE, Bahrain, Oman and Qatar, according to its website.
The momentum of initial public offerings has returned to the Saudi stock market after a lull that usually accompanies the summer vacation months. Following the listing of Al Majed Oud, Arabian Mills for Food Products and Fourth Mills, at a time when investment bank EFG Hermes of Egypt says liquidity for Middle Eastern offerings is starting to shrink.
It is worth noting that the price range for the offering - which amounts to 7.5 million ordinary shares of the company's shares, representing 30% of the company's capital - was set between 90 and 94 riyals per share, bringing the value of the offering to the equivalent of 705 million riyals (i.e. 187.8 million dollars).
Al Majed for Oud has appointed BSF Capital, the investment banking arm of Banque Saudi Fransi, to manage the offering.
Al Majed Oud was founded in 1956 and now has 300 sales outlets in Saudi Arabia, Kuwait, the UAE, Bahrain, Oman, Bahrain and Qatar, according to its website.
Meanwhile, Arabian Oud, another Saudi perfume maker, is likely to eventually go public on the Riyadh stock exchange, having appointed Emirates NBD Capital and NCB Capital earlier this year to manage a potential offering, Bloomberg reported.
On the other hand, the Arab Mills for Food Products Company aims to raise up to $271 million from offering 30% of its shares on the Saudi Stock Exchange.
