‎Avalon Pharma plans 6M share sale on TASI

Logo of Middle East Pharmaceutical Industries Co. (Avalon Pharma)

Middle East Pharmaceutical Industries Co. (Avalon Pharma) announced the prospectus for offering six million shares, representing 30% of its share capital, on the Saudi Exchange (Tadawul).

The Capital Market Authority (CMA) approved, in December 2023, Avalon Pharma’s application for the share offering.

The subscription period for participating parties and the book-building process will run for five days from Jan. 14-18.

Meanwhile, the retail offering will run for three days from Jan. 30 to Feb. 1.

As per the prospectus, participating parties will initially be allocated six million shares, representing 100% of the total shares on offer.

In case retail subscribers subscribe to all shares allocated to them, the bookrunner shall have the right to reduce the number of shares allocated to the participating parties to 5.4 million shares as a minimum, representing 90% of the offering shares.

Initially, 1.8 million shares will be earmarked to the public funds category, representing 30% of the total. This figure could be slashed to 1.62 million shares if there is sufficient demand from retail subscribers.

Retail subscribers will be allotted a maximum of 600,000 shares of the total offering, or 10% of the offered shares.

Avalon Pharma develops, manufactures, markets and distributes a range of pharmaceuticals and generic meds in Saudi Arabia and abroad.

According to its commercial register, the company’s activity is represented in disinfectants and sterilizers for medical devices and products. This is in addition to the manufacturing of disinfectants and sterilizers for non-medical use, as well as cosmetics and pharmaceutical preps for human use.

Company Profile

Company

Avalon Pharma

Market

Tadawul (TASI)

Core Activities

Pharmaceuticals

Capital

SAR 200 mln

Number of Shares

SAR 20 mln

IPO Summary

Issue Percentage

30% of capital

Number of Offer Shares

6 mln

Qualified Subscribers

Participating parties – Retail investors

Minimum Limit for Retail Investors

10 shares

Minimum Limit for Institutional Investors

10,000 shares

Maximum Limit for Retail Investors

600,000 shares

Maximum Limit for Institutional Investors

990,000 shares

Institutional Offering & Book-Building Period

Jan.14-18, 2024

Retail Offering

Jan. 30-Feb. 1, 2024

Final Allocation

Feb. 8, 2024

Refund (if any)

Feb. 14, 2024

Additional Information

Financial Advisor & Bookrunner 

Aldukheil Financial Group

Lead Manager & Underwriter

Alinma Investment

Receiving Banks

Alinma Bank – Saudi National Bank (SNB)

Major Shareholders

Shareholders

Pre-IPO

Post-IPO

Number of shares

(mln shares)

Ownership Stake

(%)

Number of shares

(mln shares)

Ownership Stake

(%)

Tabbaa National Holding Co.

12.05

60.25 %

8.44

42.18 %

Talal Yousuf Zahid

4.20

21.00 %

2.94

14.70 %

Ali Shaher Ahmad Al-Tabbaa

1.32

6.60 %

0.92

4.62 %

Faisal Shaher Ahmad Al-Tabbaa

1.28

6.40 %

0.90

4.48 %

Durrat Al-Wadaa Investment Co.

0.50

2.50 %

0.35

1.75 %

Yousuf Talal Yousuf Zahid

0.40

2.00 %

0.28

1.40 %

Durrat Al-Faisal Investment Co.

0.25

1.25 %

0.18

0.88 %

Public

—

—

6.00

30.00 %

Total

20.00

—

20.00

100 %

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