Retail subscription to 600,000 Avalon Pharma shares on TASI begins today

Logo of Middle East Pharmaceutical Industries Co. (Avalon Pharma) 

Retail investors will begin subscribing to 600,000 shares of Middle East Pharmaceutical Industries Co. (Avalon Pharma) on the Tadawul All Shares Index (TASI) today, Jan. 30, at the book-building price of SAR 82 per share.

The retail subscription will run for three days until Feb. 1, the company said.

On Dec. 6, the Capital Market Authority (CMA) approved Avalon Pharma’s application to float six million shares of its capital on the Saudi Exchange (Tadawul).

The institutional offering closed last week after being 138.7x covered.

Avalon Pharma’s IPO is the first this year in the main market, TASI.

Last year, eight companies went public on TASI, namely Morabaha Marina Financing Co. (MRNA), Al Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co., First Milling Co.’s (First Mills), Lumi Rental Co., ADES International Holding Co., Saudi Logistics Services Co. (SAL), and MBC Group Ltd.

Company Highlights:

Avalon Pharma was established as a limited liability company in 1998 in Riyadh with a capital of SAR 500,000. In 2022, the company was converted into a closed joint stock company, and its current capital is SAR 200 million.

The company develops, manufactures, markets, and distributes a range of pharmaceutical and generic medicines in Saudi Arabia and abroad through a diverse, high-quality product portfolio covering several therapeutic categories.

According to the company's commercial register, its activities include disinfectants and sterilizers for medical devices and products. This is in addition to producing disinfectants and sterilizers for non-medical use, as well as cosmetics and pharmaceutical preparations for human use.

Avalon Pharma generates revenue primarily from medicines and skin products, as well as respiratory medicines, through its more than 70 brands.

According to Euromonitor International's market study, Avalon Pharma had the largest market share of dermatological products, medicines, and skin care products in the Kingdom at 8.9%, as well as the fourth largest share of the respiratory medicine market at 9.1%.

The company is constantly studying investment opportunities in the field of manufacturing medicines and healthcare products to provide a range of healthcare and physical solutions.

Over the past years, it has succeeded in investing in a large number of products to boost its portfolio, develop the product assortment, and enter additional therapeutic categories by launching new brands.

Avalon Pharma’s sales extend outside the Kingdom to many countries in the Gulf, the Middle East, and Africa, mainly Kuwait, UAE, Jordan, Iraq, Yemen, Bahrain, Lebanon, Egypt, Sudan, and Libya.

The company's revenues from foreign sales to export customers amounted to about SAR 26.1 million by the end of 2022, constituting 8.6% of the company’s total revenues.

Avalon Pharma has a wholly-owned subsidiary in the UK, Avalon Pharma UK Holdings Limited, which in turn owns three subsidiaries.

Company Products:

The company's product line includes over 250 products under more than 70 trademarks in a variety of therapeutic categories. Furthermore, the firm is preparing to register 19 new products with the Saudi Food and Drug Authority (SFDA).

The company's clients include government agencies, healthcare institutions, and hospitals, as well as pharmacies, pharmacy chains, hospitals, clinics, and hypermarkets in the private sector.

Avalon Pharma concluded a number of sales contracts in the Saudi healthcare sector to supply medicines and pharmaceutical products.