Saudi’s Perfumer Al Majed Oud’s IPO Offers 30% Stake

Al Majed Oud Company, one of the leading companies specialised in manufacturing and developing oud and perfume products in Saudi Arabia and increasingly in the GCC countries, will offer 30% (7.5 million shares) stake through an initial public offering (IPO) and list its ordinary shares on the main market of the Saudi Stock Exchange Tadawul.

The company has set the initial public offering (IPO) price range between $23.99- 25.05 per share.

At the top end of the range, the transaction would give the company a market cap of up to $6.4 billion at listing, and raise $187.9 million in proceeds. While $6.66 million of IPO proceeds will go towards covering costs associated with the offering including advisory, book-building, legal, auditing, marketing, and other fee, the selling shareholders will divide the rest of the proceeds on a pro rata basis.

The subscription period for institutional investors kicked off on Sunday and will run until August 29. The retail subscription window will open on September 15, with final share allocations to be announced on September 19.

According to the company’s announcement, institutional investors are being allotted 100% of the offering, but the financial advisor can reduce that to 80% and allocate 20% of the offering to retail investors if there is sufficient demand during the retail subscription window.

“Public funds – which are counted as institutional investors – will be earmarked 30% of the offering, which may be rolled back to 24% if demand falls short,” the announcement said.

Lock-up Period

Major shareholders are restricted from selling their shares for a six-month period beginning with the start of trading. The company is also not allowed to issue or list any additional shares of the same category for six months after trading begins.

Company’s chairman Majid Ali Othman Al Majid said that Al Majed Oud has achieved remarkable achievements and exceptional growth over the past six decades, becoming one of the largest leading brands in the oud and perfumes sector in the region.

Based on its rich heritage and unwavering commitment to providing high-quality products, the company enjoys a broad customer base that demonstrates the highest levels of trust and loyalty to our brand.

According to him, this anticipated listing on Tadawul represents the beginning of a new phase that will witness the continuation of work on implementing the expansion strategy that is based on the values ​​of innovation while preserving the company’s legacy and authenticity.

“This qualitative step is clear evidence of the rapid growth witnessed by the company and the strength of the governance mechanisms it adopts, and it will undoubtedly contribute to strengthening our commitment to the highest standards of excellence and achieving the best possible value for all stakeholders,” he added.