Almunajem Foods, one of the largest food companies in Saudi Arabia, said that the price range for its initial public offering (IPO) has been set between SR55 ($14.64) and SR60 ($15.97) per share.

The offering is comprised of 18,000,000 existing ordinary shares of the company to be sold by the current shareholders. The total Offering size is expected to be between SR990 million ($264 million) and SR1,080 million ($288 million), implying a market capitalization at listing between SR3,300 million ($880 million) and SR3,600 million ($960 million)

Following listing, the company is expected to have a free float of 30% of the entire issued share capital of the company.

Following the completion of the institutional tranche, the offer shares will also be offered to Saudi Arabian nationals, foreign residents in the Kingdom of Saudi Arabia and GCC nationals.  Initially, 100% of the offer shares will be provisionally allocated to the Institutional Investors.

This may be reduced to 16,200,000 offer shares (representing 90% of the total offer shares) depending on the level of demand by Individual Investors. The final number of Offer Shares allocated to the Institutional Investors will be accordingly adjusted based on subscription from Individual Investors.

The offer of offer shares to Institutional Investors will be made as follows:

•    Institutional Investors registered in the Kingdom may submit a Bid Form or may apply for subscription with the Bookrunner electronically during the Book-Building Period to be made available by the Financial Advisor and Bookrunner. In all cases, Institutional Investors registered in the Kingdom must complete the Institutional Investors Subscription Form after the allocation of Offer Shares based on the number of Offer Shares allocated to them.

•    Institutional Investors not registered in the Kingdom may apply for subscription with the Bookrunner telephonically or electronically, without the need to complete and sign a Bid Form. Institutional Investors not registered in the Kingdom must complete the Subscription Form for Participating Parties after the allocation of Offer Shares based on the number of Offer Shares allocated to them.

The offer of Offer Shares to Retail Investors will be made as follows:

•    Individual Investors are required to fill and submit a retail subscription form. Retail Investors who have participated in recent initial public offerings in the Kingdom can also subscribe through the internet, telephone banking or automated teller machines (ATMs) of any of the receiving agents branches that offer any or all such services to its customers, provided that the following requirements are satisfied: (i) the Retail Investor must have a bank account at a Receiving Entity which offers such services and (ii) there have been no changes in the personal information or data of the Individual Investor since such person's subscription in the last initial public offering.

•    The substantial shareholders who each own 5% or more of the Shares and comprise Abdullah Ali Almunajem Sons Company (the substantial shareholder) may not dispose of any of its shares for a period of 6 months, and the company may not list additional shares on the Saudi Exchange for a period of 6 months, in each case from the date on which trading of the company’s Shares commences on the Saudi Exchange.

With respect to the offering, the company appointed HSBC Saudi Arabia as Financial Advisor, Lead Manager, Bookrunner, and Underwriter. SABB, Saudi National Bank and Al Rajhi Bank have been appointed as receiving agents.

Key offering timeline:

•    Bidding and Book-Building Period: 15 November 2021 - 21 November 2021
•    Subscription period of Individual Investors: 5 December 2021 – 6 December 2021
•    Announcement of Provisional Offer Shares Allocation:    25 November 2021
•    Final date for submitting the subscription forms:    30 November 2021
•    Final allotment of share and notification of excess subscription monies (if any):    11 December 2021
•    Refund of excess Subscription Amounts (if any):    13 December 2021
•    Expected start date of trading on the Exchange:    Trading of the Company's Shares in the Exchange is expected to commence after relevant regulatory requirements are satisfied. Trading will be announced through the Saudi Exchange website. – TradeArabia News Service