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IPO Monitor | Almajed Oud Launches One-Day Retail Subscription for 1.5 Million Shares at SAR 94
Tadawul All Shares Index -0.09%
ALMAJED OUD -0.22%
Tadawul All Shares Index TASI.SA | 10715.98 | -0.09% |
ALMAJED OUD 4165.SA | 135.80 | -0.22% |
The retail subscription for 1.5 million shares of Almajed for Oud Co. officially began on September 15, at a price of SAR 94 per share, determined through the book-building process. This offering is available for one day only.
Earlier this year, in June 2024, the Capital Market Authority (CMA) approved Almajed Oud’s plan to list 7.5 million shares on the Saudi Stock Exchange (TASI), representing 30% of the company’s capital with a nominal value of SAR 10 per share.
Institutional Offering Results
The institutional offering concluded last week with an impressive coverage ratio of 156.5 times. The shares allocated for retail investors make up 20% of the total shares offered in the public subscription.
Company Overview
Established in 1982 and headquartered in Riyadh, Almajed Oud is a leading name in the perfume and aromatic products industry. The company operates with a capital of approximately SAR 250 million, specializing in the production and retail of perfumes, oud, incense, aromatic oils, and related products. Almajed Oud manages a portfolio of over 650 products across 132 brands, sold through its 286 retail stores, online platforms, and third-party e-commerce channels.
Product Range
According to its prospectus, Almajed Oud has created more than 1,000 perfume products and currently offers 675 items in six distinct categories. Between 2020 and 2023, the company introduced 205 new products, with plans for further releases in 2024.
Store Network & Market Reach
As of the end of 2023, Almajed Oud operated 237 stores in Saudi Arabia and an additional 49 branches in the UAE, Kuwait, Bahrain, and Oman. The company holds a 5.2% share of the Saudi perfume market.
Financial Performance
Almajed Oud's revenue increased significantly from SAR 442.5 million in 2021 to SAR 767 million in 2023, reflecting a compound annual growth rate (CAGR) of 31%. Perfume sales accounted for 64% of revenues, while oud products represented 14.3%.
The company’s physical stores contribute the majority of its sales at 92.6%, with online sales making up 4.1%.
Geographical Distribution
Almajed Oud's primary operations are within Saudi Arabia, where it operates 237 stores. The company also has branches in Kuwait (15), the UAE (26), Bahrain (1), and Oman (7). Total sales in Saudi Arabia reached SAR 692 million, while sales from the above markets contributed SAR 75 million.
Saudization and Workforce
By the end of 2023, Almajed Oud employed 1,863 staff members, 809 of whom are Saudi nationals. The company’s Saudization rate stood at 57.7%.
Substantial Shareholders of the Company Pre- and Post-Offering
| Shareholder | Pre-Offering No. of Shares | Pre-Offering Direct Ownership | Pre-Offering Par Value (SAR) | Post-Offering No. of Shares | Post-Offering Direct Ownership | Post-Offering Par Value (SAR) |
|---|---|---|---|---|---|---|
| Khaled Ali Othman Al Majed | 5,625,000 | 22.5% | 56,250,000 | 3,937,500 | 15.75% | 39,375,000 |
| Saad Ali Othman Al Majed | 5,625,000 | 22.5% | 56,250,000 | 3,937,500 | 15.75% | 39,375,000 |
| Suleiman Ali Othman Al Majed | 5,625,000 | 22.5% | 56,250,000 | 3,937,500 | 15.75% | 39,375,000 |
| Majed Ali Othman Al Majed | 5,625,000 | 22.5% | 56,250,000 | 3,937,500 | 15.75% | 39,375,000 |
| Bader Ali Othman Al Majed* | 1,250,000 | 5% | 12,500,000 | 875,000 | 3.50% | 8,750,000 |
| Mohammed Ali Othman Al Majed* | 1,250,000 | 5% | 12,500,000 | 875,000 | 3.50% | 8,750,000 |
| Total | 25,000,000 | 100% | 25,000,000 | 175,000,000 | 70% | 175,000,000 |
*Note: Mr. Bader Ali Othman Al Majed and Mr. Mohammed Ali Othman Al Majed will no longer be considered as substantial shareholders post-offering.
IPO Profile
| Category | Details |
|---|---|
| Company | Almajed for Oud Co. |
| Market | Main Market (TASI) |
| Core Activities | Production and retail of perfumes, oud, incense, and aromatic oils |
| Capital | SAR 250 million |
| Number of Shares | 25 million |
| Par Value | SAR 10/share |
IPO Summary
| Category | Details |
|---|---|
| Issue Percentage | 30% |
| Number of Offered Shares | 7.5 million |
| Qualified Subscribers | Qualified entities & Retail investors |
| Minimum Number of Offer Shares to be Applied for by Individual Investors | 10 shares |
| Maximum Number of Offer Shares to be Applied for by Individual Investors | 250,000 shares |
| Number of Shares Offered to Individual Investors | A maximum of 1,500,000 Offer Shares, representing 20% of the total Offer Shares. In the event that Individual Investors do not subscribe in full for the Offer Shares allocated to them, the Lead Manager may reduce the number of Offer Shares allocated thereto in proportion to the number of Offer Shares subscribed for thereby. |
Key Dates
| Event | Hijri Date | Gregorian Date |
|---|---|---|
| Offering Period for Participating Parties and Book Building Period | 21/02/1446H - 25/02/1446H | 25/08/2024G - 29/08/2024G |
| Deadline for submission of Subscription Forms by Participating Parties based on the provisional allocation of Offer Shares | 05/03/1446H | 08/09/2024G |
| Submission Period for Individual Investors | 12/03/1446H | 15/09/2024G |
| Deadline for payment of subscription money by Participating Parties based on their provisional allocation of Offer Shares | 07/03/1446H | 10/09/2024G |
| Deadline for submission of Subscription Application Forms and payment of the subscription monies by Individual Investors | 12/03/1446H | 15/09/2024G |
| Announcement of final Offer Shares allotment | 16/03/1446H | 19/09/2024G |
| Refund of excess subscription monies (if any) | 21/03/1446H | 24/09/2024G |
| Expected trading commencement date for the Shares | To be announced | To be announced |
Note: The above timetable and dates therein are indicative. Actual dates will be communicated through announcements on the Tadawul website (https://www. saudiexchange.sa), and the Company’s website (www.almajed4oud.com)
Previous News:
IPO Monitor | Al Majed Oud Prices IPO at Top Range, with Institutional Coverage Ratio of 15,646%
IPO Monitor | Overview for The Next IPO in Saudi Market: Al Majed for Oud Company
- Reporting by Zaid, Sahm News team
