BinDawood Holding, the retail chain of Saudi Arabia, has priced its initial public offering (IPO) at $25.59 a share, the company announced.
The Saudi Arabian retailer group announced that the book-building procedure has created an order book of $28.50 billion.
The subscriptions came from public funds, private funds and discretionary portfolios, non-Saudi investors and other investors such as government and financial institutions, the retailer group added.
The CEO of BinDawood Holding, Ahmad Abdulrazzaq BinDawood commented that “I am very pleased with the exceptionally strong demand we have witnessed for BinDawood Holding shares by institutional investors.” His statement also added that the market capitalization of the retailer group is expected at $2.92 billion with $25.59 per share.
Retail investors can subscribe to the shares from October 8 to October 12 at the final offer price. The share allotment is expected on October 15.
More family-owned companies in Saudi Arabia are encouraged to list an IPO as the kingdom aims to reduce its dependency on the oil market and deepen its capital markets. This is particularly true since the oil giant Aramco’s historic IPO last year. Saudi Arabia’s stock market is about to witness yet another huge listing with BinDawood’s IPO.
BinDawood Holding, which operates the BinDawood and Danube brands, manages more than 70 hypermarkets and supermarkets in major Saudi cities including Makkah, Medina, Jeddah, Riyadh, Khobar and Dammam. Its profit for the first half of this year rose 82 percent from the same period a year ago, the company said.
The BinDawood supermarket chain is focused on the middle-income customers and Muslim pilgrims in the kingdom, while the Danube chain is focused on wealthier customers.