Al-Dawaa Medical Services Company, one of the largest pharmaceutical retail companies in Saudi Arabia, has announced its intention to proceed with an initial public offering on the Tadawul’s main market.
The announcement follows the Capital Market Authority’s approval of the company’s application for the listing in December.
Shares will be offered for subscription to retail and institutional investors, a statement said, adding that 100 percent of the offer shares will be offered to institutional investors, with a clawback to retail investors of up to 10 percent of the total.
Al-Dawaa’s first pharmacy was established in 1993 and today has a chain of over 800 pharmacies across the kingdom together with online and wholesale channels.
According to the statement, the company will offer 30 percent of its issued share capital, equivalent to 25,500,000 shares. The final offer price will be determined at the end of the book-building period.
Samir Mahmood Fayyad Abdulhadi, chairman of Al-Dawaa, said: “It has always been Al-Dawaa’s vision to be the leading pharmacy chain in Saudi Arabia and today’s announcement of our intention to go public represents a significant milestone in the achievement of this aim.
“Our listing will support our ongoing expansion as well as enhance our position as a key contributor within the pharmaceutical sector to the realisation of Saudi Arabia’s Vision 2030.”
Mohammed Saad Butti Al-Farraj, CEO of Al-Dawaa, added: “I am proud of the business that we have built, which successfully combines high quality service to our loyal customer base with state-of-the-art infrastructure and technology… we are well positioned to continue to deliver our growth and expansion plans, underpinned by the attractive socio-economic backdrop within the kingdom.”
The company has appointed GIB Capital as the financial advisor, the lead manager, the bookrunner and the lead underwriter while Alinma Investment Company and ANB Invest are joint underwriters.
The Saudi National Bank, Al Rajhi Bank, the Saudi British Bank and Riyad Bank have been appointed as selling agents.
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