RIYADH: Al-Dawaa Medical Services Company (“Al-Dawaa” or the “Company”), one of the leading pharmaceutical retail companies in Saudi Arabia, along with GIB Capital as the financial advisor, has announced the successful results of its individual subscription offering process for its Initial Public Offering (the "IPO" or the "Offering").

The subscription period for the Individual Subscribers Tranche, comprising 2,550,000 shares or 10% of the total Offer Shares at a final Offer Price of SAR 73, commenced on Sunday, 27 February 2022 and ended on Tuesday, 1 March 2022.

The Individual Subscribers Tranche witnessed participation by 1,110,942 subscribers and was 2,515% oversubscribed with a total demand of SAR 4,682,584,270. Individual Subscribers will each receive a minimum of two shares, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 0.5299%.

Based on the results of the Offering to Individual Subscribers, the shares allocated to Participating Parties will be scaled back to 22,950,000 Offer Shares, representing 90% of the total Offer Shares.

Offering Details:

  • The Final Offer Price for the Offering was set at SAR 73 per share, implying a market capitalization on the listing date of SAR 6.2 billion.
  • The total Offering size is SAR 1.86 billion.
  • The Offering comprises 25,500,000 ordinary shares, representing 30% of the Company’s share capital by way of a sale by existing shareholders.
  • 100% of the Offer Shares were provisionally allocated to a number of institutions and companies that include the categories that are entitled to participate in the book building process (“Participating Parties”). This has been reduced to twenty-two million, nine hundred fifty thousand (22,950,000) Offer Shares, representing 90% of the total Offer Shares. The final number of Offer Shares allocated to the Participating Parties has been adjusted accordingly based on subscription from Individual Investors.
  • Immediately following the listing, the Company will have a free float of 30% of the share capital of the Company.
  • The Company has appointed GIB Capital as the Financial Advisor (“Financial Advisor”), the Lead Manager (“Lead Manager”), the Bookrunner (“Bookrunner”) and the Lead Underwriter (“Lead Underwriter”) with respect to the Offering. In addition, the Company has appointed Alinma Investment Company and ANB Invest as Joint Underwriters in relation to the Offering (“Underwriters”).
  • The Saudi National Bank, Al Rajhi Bank, the Saudi British Bank (SABB) and Riyad Bank have been appointed as selling agents (collectively, the “Selling Agents”).

Expected Start Date of Trading in the Exchange:

Trading of the Company’s Shares in the Exchange is expected to commence after all relevant regulatory requirements are satisfied. Trading will be announced through Saudi Exchange website www.saudiexchange.sa.

For more information on the prospectus, please visit the Capital Market Authority website www.cma.org.sa, and Al-Dawaa website on https://www.al-dawaa.com.sa/ipo/.