UAE - Abdullah Al Othaim Investment Company (AOIC), a leading mall, entertainment, fashion and F&B operator in KSA, will offer 30 million ordinary shares through an initial public offering (IPO) and list them on Saudi Exchange’s Main Market.
The Capital Market Authority (CMA) has approved on March 2022 the company’s application for the offering, representing 30% of its issued share capital, by way of sale of existing shares by the company’s current shareholders, Abdullah Al Othaim Markets Co and Abdullah Saleh Al Othaim (Current Shareholders or Selling Shareholders).
The final offer price of the offer will be determined at the end of the book-building period.
Proven track record
AOIC has a proven track record of operational performance and financial returns, with strong revenue and earnings growth driving robust cash flow generation.
Over the past 15 years since its establishment, AOIC has served the kingdom and excelled in developing and maintaining successful large shopping malls. The company has a strategically positioned mall portfolio, with market leadership in small and medium cities and a targeted offering in major cities, showcased by its 10 shopping malls, 37 fashion retail stores and 29 restaurants and coffee shops in the kingdom, and 38 entertainment centres in six countries across the GCC and North Africa.
Chairman Abdullah Saleh Al Othaim commented: “Since its establishment, the company has built a reputation for being trustworthy and resilient while delivering long-term value for all stakeholders. The listing will provide an important strategic dimension to propel the company’s growth strategy, enabling expansion into new geographies and building upon the success of its mall and entertainment offerings. Ultimately, our customers, investors, and the wider community alike will benefit from the resulting increase in quality offerings, particularly in currently underserved areas, as well as job creation in line with Vision 2030.”
Next phase of journey
CEO Meshaal Bin Omairh commented: “Thanks to our diversified revenue streams, strong balance sheet, and agility and responsiveness as a business, Abdullah Al Othaim Investment Company weathered the pandemic. Now is the time to embrace the next phase of our journey through our intention to list, thereby further enhancing our governance and business operations, aligning our strategy with the kingdom’s Vision 2030 aspirations. By listing, we seek to fuel our growth strategy, strengthening our already competitive offering and unlocking new opportunities. We will continue to diversify our complementary products and services and leverage multiple consumer-driven avenues for growth in parallel, supported by positive market dynamics.”
The company’s growth is intertwined with Vision 2030 in line with the Quality of Life Programme and the kingdom’s emphasis on developing currently under-served areas, resulting in market growth for promising sectors such as tourism, leisure, and entertainment.
These sectors are benefitting from Vision 2030’s target of increasing spending on cultural and entertainment activities to approximately 6% of household spending, further advanced by the kingdom’s rapid urbanisation.
Upward growth trajectory
In addition, the kingdom continues to experience a strong post-pandemic upward growth trajectory for the retail, entertainment, and food and beverage sectors, contributing to the positive market dynamics.
The company welcomed approximately 41 million visitors per year on average and achieved an average occupancy rate of more than 85% between 2018-2021.
It has a clear strategy to continue profitable growth through targeted expansion in the kingdom’s secondary cities and densely-populated areas of the major cities.
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