Saudi retailer said to plan IPO of supermarket business

Sources say BinDawood Group has started preliminary work to list the holding company that manages its supermarkets and hypermarkets
Saudi retailer said to plan IPO of supermarket business
By Bloomberg
Thu 20 Jun 2019 01:34 PM

Saudi Arabian retailer BinDawood Group is planning an initial public offering of its supermarket business as early as next year, according to people with knowledge of the matter.

The group has started preliminary work to list the holding company that manages its supermarkets and hypermarkets, said the people, asking not to be identified because the information is private.

BinDawood may list the shares on the Saudi stock exchange and an IPO would allow Bahrain’s Investcorp Bank to exit its minority stake in the firm, one of the people said. The company hasn’t hired financial advisers and may decide not to proceed with a deal, the people said.

Share sales in Saudi Arabia are picking up after a five-year slump. The kingdom’s bourse is drawing attention from global emerging-market investors after it was added to benchmarks compiled by MSCI Inc and FTSE Russell.

Saudi retailer Fawaz Alhokair Group raised about 2.47 billion riyals ($659 million) last month from the IPO of its malls unit.

If BinDawood proceeds with an offering, it would be the third Saudi investment Investcorp has exited via an IPO in five years. It also listed L’Azurde Co for Jewelry in 2016 and gym operator Leejam Sports Co last year.

BinDawood’s supermarket business was valued at about $2 billion when it tried to sell a stake in 2015, people familiar said at the time. The company plans to have about 90 stores in Saudi Arabia by 2020, according its website.

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