Avalon Pharma unveils IPO for Tadawul listing

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Riyadh – The final price for the initial public offering (IPO) of Middle East Pharmaceutical Industries Company (Avalon Pharma) has been settled at SAR 82, according to a bourse statement.

The retail subscription process, comprising a maximum of 600,000 shares, representing 10% of the total Offering shares, took place during 30 January-1 February 2024.

The transaction registered 284,739 applications for 807,467 investors including dependents, indicating a coverage of 54.27 times and a total demand of SAR 2.67 billion ($712.10 million).

The IPO implied a cap of SAR 1.64 billion ($437.33 million) at listing. Meanwhile, the recorded orders during the institutional book-building stood at around SAR 68.27 billion ($18.21 billion), representing a coverage of 138.76 times.

Individual investors will receive a minimum of two shares each, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of around 0.095% for each applicant from their subscribed shares.

In January, Avalon Pharma announced plans to trade 6 million ordinary shares, equivalent to 30% of its share capital, on the Main Market of the Saudi Exchange (Tadawul). The company set the price range of its IPO at SAR 78-SAR 82.

Aldukheil Financial Group, the book-runner and financial advisor for the transaction, will finalise the required procedures with Tadawul and then determine the date for listing the shares.