Alamar book-building process starts today, price range set at SAR 103-115/share

Logo of Alamar Foods Co.

Alamar Foods Co. started the institutional book-building period and set the price range for its potential initial public offering (IPO) on the Saudi Exchange (Tadawul) at SAR 103-115 per share, financial advisor HSBC Saudi Arabia said in a bourse statement today, June 20.

HSBC Saudi Arabia is also the bookrunner, lead manager and underwriter on the potential IPO.

Bidding and book-building period for the participating entities starts today, June 20, and ends on June 27.

The final offer price will be determined after the completion of the book-building process, which will be followed by the individual investors’ subscription process, the statement noted. 

Saudi Arabia’s Capital Market Authority (CMA) approved on June 7 the application filed by Alamar to float 10.63 million shares, representing 41.7% of its capital, Argaam earlier reported.  

The two-day subscription period for individual investors will start from July 20-21.    

The offering is restricted to two groups of investors, with tranche A, or participating parties, including the parties entitled to participate in the book-building process as specified under the book-building instructions. 

The number of the offer shares that will be initially allocated to the participating parties is 10.63 million, representing 100% of the total offer shares. The final allocation will be made after the end of the retail offering period.   

In the event that individual investors subscribe to the offer shares allocated thereto, the bookrunner will have the right to reduce the number of shares allocated to participating parties to 9.57 million shares, representing 90% of the total offer.  

The tranche B, or individual investors, comprises Saudi citizens, any non-Saudi natural persons who reside in the Kingdom or any GCC natural persons, provided they have a bank account with one of the receiving entities and are allowed to open an investment account. A maximum of 1.06 million shares, representing 10% of the total offer, will be allocated to individual investors  

The company made a debut as a branch of Al Jammaz Establishment, under the name Supply Services Corporation. In 1985, it converted from a sole proprietorship to a limited liability company, named Alamar Foods Co., with SAR 100,000 capital.  

In 2016, Alamar, which increased its capital several times to reach SAR 255 million, converted into a closed joint-stock company. 

The company is the exclusive franchisee and operator of the Domino's Pizza brand in the Middle East, North Africa and Pakistan (MENAP), in addition to the Dunkin' brand in Egypt and Morocco.  

Alamar runs 11 subsidiaries in Saudi Arabia, UAE, Egypt, Morocco, Qatar, Bahrain, Kuwait, Oman, Lebanon and Jordan.

For More IPOs