Almunajem’s IPO Said to Draw Demand for All Shares on Sale
Almunajem’s IPO Said to Draw Demand for All Shares on Sale
(Bloomberg) -- Almunajem Foods Co., one of Saudi Arabia’s largest private food companies, has demand for all the shares for sale in its initial public offering that’s seeking to raise as much as $288 million, according to people familiar with the matter.
The Riyadh-based firm is selling 18 million shares, equivalent to a 30% stake, at 55 riyals ($14.66) to 60 riyals apiece. Within hours of opening the order book, the IPO had enough investor demand to cover all the shares on offer throughout the price range, the people said, declining to be named as the information is private.
More family-owned companies have been listing in Saudi Arabia as officials try to deepen its capital markets and shake up traditional ways of doing business. Many are looking to raise cash from their established businesses while equity valuations are high and IPOs are being massively oversubscribed.
Riyadh has lately been the hottest market for IPOs in the region, with listings of companies such as ACWA Power International, backed by the kingdom’s wealth fund, and Saudi Telecom Co.’s internet-services unit.
Grocery chain BinDawood Holding Co. sold a 20% stake last year, helping to buttress the clan’s efforts to diversify into other assets. Other family firms to sell shares include Dr. Sulaiman Al Habib Medical Services Group Co. and Theeb Rent-a-Car. The Olayan family, which runs one of Saudi Arabia’s biggest conglomerates, may revive plans to take some of its companies public.
More details on Almunajem’s IPO:
- Subscription period for institutional investors: Nov. 15 to 21
- Subscription period for retail investors: Dec. 5 to 6
- HSBC Holdings is the IPO adviser
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