One of the largest supermarket chains in Saudi Arabia, BinDawood Holdings is seeking to raise about $585 million from the share sale.
The company has set an indicative price ranging between $22.4 and $25.64 for the initial public offering, according to regulatory filings.
BinDawood is planning to sell 20 percent of ownership which amounts to about 22.86 million shares through a book-building process and reports suggest that it targets a price between $2.56 and $2.94 billion.
The IPO marks another major listing for Saudi Arabia’s bourse, as companies tap into Saudi demand for shares since oil giant Aramco’s record IPO last year.
BinDawood says that there was an 82 percent rise in first-half profit compared to the previous year.
At first, all the shares will be provisionally allotted to institutional investors and depending on the demand the allocation may be reduced to 90 percent.
The book-building period for institutional investors will be from September 13 to September 22. The subscription period for retail investors will be between September 27 and September 29 and the allocation of all shares will be on October 1.
Saudi Arabia is currently encouraging more family-owned businesses to list in a bid to enhance its capital market as the country is aiming to reduce its oil revenue dependency.
BinDawood has assigned the Goldman Sachs Group Inc., JP Morgan Chase & Co., GIB Capital and NCB Capital on the IPO.
BinDawood Holding Inc.
BinDawood Holding Inc. operates BinDawood and Danube supermarket brands and manages more than 70 hypermarkets and supermarkets in the major cities of the Kingdom. While the BinDawood supermarkets aim at middle-class customers and Muslim pilgrims, the Danube is focused on high-end customers.