Tuesday, 7 January 2014/ 6 Rabi'ul Awwal 1435 AH: FALCOM Financial Services, the financial advisor and lead manager of FARM Superstores' IPO, announced today start of the book building process as a prelude to offering 7,500,000 shares representing 30% of outstanding shares of FARM Superstores. FALCOM is conducting a road show presentation today for representatives of eligible institutional investors, including investment funds, to describe FARM Superstores' vision, growth strategy, historical financial achievements, and expansion in the retail sector.
Mr. Adeeb Abdulrahman Al-Sowailim, CEO & Member of the Board of Directors of FALCOM Financial Services, stated that the book building process, during which the institutional investors will subscribe for up to 100% of the offered shares i.e. 7,500,000 shares, will be used to determine the final offer price at which up to 50% of the shares will be offered for subscription to retail subscribers.
Mr. Al-Sowailim also said that the book building process begins on Wednesday, January 8, 2014, and continues till 1:00 pm on Wednesday, January 15, 2014, and that the retail subscription period will begin on Wednesday, January 22, 2014, and end on Tuesday, January 28, 2014. He also said that FALCOM and other receiving banks are making every effort to facilitate subscribers apply to the IPO via electronic channel and branches spread across the Kingdom.
Engr. Hazem Al Aswad, Chairman of the Board of Directors of FARM Superstores, said that FARM Superstores was founded in
Dammam in 1978 and since then his company has enjoyed a privileged position in the Saudi retail market. As of end of 2013, FARM Superstores had 45 supermarkets, 20 mini markets, 3 wholesale outlets, and 7 Adventure World entertainment centers in the Kingdom. He also stressed that his company was now seeking growth opportunities within the Kingdom, and is planning on opening 8 supermarkets (including 2 supermarkets in Riyadh), 2 mini markets and 1 adventure world outlet in 2014 in various cities in the Kingdom.
Engr. Hazem also stated that the size of the retail market in the Kingdom is expected to grow from its present SAR 328 billion to SAR 460 billion by 2016 of which food and convenience items will represent about 50%. Engr. Hazem attributed the retail growth to strong economy, population growth, increased income, improved lifestyle, and government initiatives aimed at raising the standard of living of the citizens.
On December 24, 2013, FARM Superstores received Capital Market Authority's approval to offer 7,500,000 shares in an IPO that would represent 30% of its outstanding shares. FARM Superstores' business is complaint with Sharia principles. On December 31, 2013, the Company obtained Sharia compliance certificate from Global Experts for Islamic Auditing and Consultations Ltd (GEIAC) allowing the subscription in the IPO. The Sharia committee was headed by Dr. Mohammed Ali Alqari.
© Press Release 2014
