Riyadh – Alamar Foods (“Alamar” or “The Company”), a leading Quick Service Restaurant (QSR) operator in the Middle East, North Africa, and Pakistan region (MENAP Region) of two globally recognized brands: Domino’s, where Alamar has the exclusive right to develop and operate in 16 Countries across MENAP, and Dunkin’, where Alamar has the exclusive right to develop and operate stores as a franchisee in Egypt and Morocco, today announces the price range for its initial public offering (“IPO” or the “Offering”) as well as the commencement of the institutional book building period. The Company’s prospectus includes all details of the IPO.

The price range for the Offering has been set between SAR 103 and SAR 115 per share (the “Price Range”) which implies a potential market capitalization at IPO of approximately SAR 2.6 billion to SAR 2.9 billion.

On 7th June 2022, the Capital Market Authority (“CMA”) approved the Company’s application for an initial public offering of 10,633,392 ordinary shares ("Offer Shares”), representing 41.699% of the Company’s capital of SAR 255 million, by way of a sale of existing shares by the selling shareholders. The final offer price of the Offer Shares will be determined at the end of the book building period.

Background to the Offering 

  • The Price Range for the Offering has been set between SAR 103 and SAR 115 per share
  • Offering and Listing on the Main Market of the Saudi Exchange of Saudi Arabia - the Offering is comprised of 10,633,392 existing shares to be sold by the current shareholder (the “Offer Shares”)
  • Immediately following listing, the Company is expected to have a free float of 41.699% of the entire issued share capital
  • With respect to the Offering, the Company appointed HSBC Saudi Arabia as a Financial Advisor, Bookrunner, Lead Manager, and Underwriter (the “Bookrunner” or “Financial Advisor”) 
  • AlRajhi Bank, Riyad Bank and Saudi National Bank (SNB) have been appointed as receiving entities (collectively, the “Receiving Entities”) for the Individual Investors tranche
  • The CMA and Saudi Exchange approvals have been obtained for the offering and listing outlined below:
  • The Offering will be restricted to the following two groups of investors:
     
    • Tranche (A): Participating Parties: this tranche comprises the parties entitled to participate in the book building process as specified under the Instructions for Book Building Process and Allocation Method in Initial Public Offerings (the “Book Building Instructions”) issued by the Capital Market Authority (“CMA”) Board pursuant to Resolution No. 2.94-2016 dated 15/10/1437H (corresponding to 20/07/2016G), as amended by CMA Board Resolution No. 3-102-2019 dated 18/01/1441H (corresponding to 17/09/2019G) (collectively the “Participating Parties”). The number of Offer Shares to be provisionally allocated to Participating Parties is 10,633,392 Offer Shares, representing 100% of the total Offer Shares. Final allocation of the Offer Shares will be made after the end of the subscription period for Individual Investors. In the event that Individual Investors (as defined in Tranche B below) subscribe for the Offer Shares allocated thereto, the Bookrunner shall have the right to reduce the number of shares allocated to Participating Parties to a minimum of 9,570,053 Offer Shares, representing 90% of the total Offer Shares.
    • Tranche (B): Individual Investors: this tranche comprises Saudi Arabian natural persons, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi, who can subscribe under their names for her own benefit, on the condition that she proves that she is a divorcee or widow and the mother of her minor children, in addition to any non-Saudi natural person who is resident in the Kingdom or any GCC natural persons, provided they have a bank account with one of the Receiving Entities and are allowed to open an investment account (collectively, the “Individual Investors” and each an “Individual Investor,” and together with Participating Parties “Subscribers”). Subscription of a person in the name of his divorcee shall be deemed invalid, and if a transaction of this nature is proved to have occurred, the law shall be enforced against such person. If a duplicate subscription is made, the second subscription will be considered void and only the first subscription will be accepted. A maximum of 1,063,339 Offer Shares, representing 10% of the total Offer Shares, will be allocated to Individual Investors, provided that Participating Parties subscribe to all the Offer Shares allocated thereto. In the event that Individual Investors subscribe for all the Offer Shares allocated thereto, the Bookrunner shall have the right to reduce the number of shares allocated to Individual Investors in proportion to the number of Offer Shares subscribed for thereby.
       
  • The offer of Offer Shares to Institutional Investors will be made as follows:
    • Institutional Investors registered in the Kingdom may submit a Bid Form or may apply for subscription with the Bookrunners via email during the Book-Building Period to be made available by the Bookrunners. In all cases, Institutional Investors registered in the Kingdom must complete the Institutional Investors Subscription Form after the allocation of Offer Shares based on the number of Offer Shares allocated to them.
    • Institutional Investors not registered in the Kingdom may apply for subscription with the Bookrunners via telephone or email, and will have to complete and sign a Bid Form. Institutional Investors not registered in the Kingdom must complete the Subscription Form for Participating Parties after the allocation of Offer Shares based on the number of Offer Shares allocated to them.
  • The offer of Offer Shares to Individual Subscribers will be made as follows:
    • Individual Subscribers are required to fill and submit a Retail Subscription Form. Individual Subscribers who have participated in recent initial public offerings in the Kingdom can also subscribe through the internet, telephone banking or automated teller machines ("ATMs") of any of the Receiving Agents branches that offer any or all such services to its customers, provided that the following requirements are satisfied: (i) the Retail Investor must have a bank account at a Receiving Agent which offers such services and (ii) there have been no changes in the personal information or data of the Individual Subscriber since such person's subscription in the last initial public offering.

Key Offering Timeline:

Event

Date

Bidding and Book-Building Period for Participating Parties

20 June 2022 – 27 June 2022 (until 03:00 PM KSA)

Subscription Period for Individual Investors

20 July 2022 – 21 July 2022

Announcement of Final Offer Shares Allotment

No later than 26 July 2022

Refund of Excess Subscription Amounts (if any)

No later than 26 July 2022

Expected Start Date of Trading of the Company's Shares on the Exchange

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

For more information on the prospectus, please visit the Capital Market Authority website www.cma.org.sa, and Alamar Foods’ website on www.alamar.com.