Al-Munajeem Food Company, one of the largest food companies in the Kingdom of Saudi Arabia, intends to offer part of its shares to the initial public offering, and to list its shares on the main market at the Saudi Tadawul.
According to Arabiya Net, the company stated, in a statement, that the initial public offering process consists of offering 18 million shares, representing 30% of the company's capital.
Initially, 100% of the offered shares will be provisionally allocated to institutional investors. This share may be reduced to 16 million and 200 thousand shares, representing 90% of the total shares offered.
The company indicated that the final number of offering shares allocated to institutional investment, will be adjusted, based on the subscription of individual investors.
The company obtained the approval of the Saudi Tadawul to list on the main market on August 17, 2021, while it obtained the approval of the Saudi Capital Market Authority for the offering on September 28, 2021. The company clarified that the final price of the offered shares will be determined after the completion of the order book building period.
HSBC Saudi Arabia will act as the financial advisor, bookrunner, bookrunner and underwriter for the company's potential public offering.
Al Minaj Food is one of the largest food companies in the Kingdom of Saudi Arabia, and the company has a unique operating model represented in the import, marketing, distribution and production of a variety of frozen, chilled and dry foods.
During the past year, the company's sales amounted to more than 2.5 billion riyals last year, an increase of 5% year on year, and its profit margin before zakat and income tax doubled, and it made profits. With a value of 230 million riyals, an increase of 111% over 2019.
In the first half of this year, revenues amounted to 1.243 billion riyals, a slight decrease compared to 1.289 billion riyals in the first half of 2020 due to the decrease in selling prices of some products as a result of the increase Promotional offers.
