Retail subscription for Burgerizzr’s 725,000 shares starts today

Logo of Burgerizzr

The retail tranche of Mataam Bayt AlShatira Lilwajbat Alsariya’s (Burgerizzr) initial public offering (IPO) will commence today, Aug. 15, comprising 750,000 shares. The retail subscription period will last until Aug. 23.

The price range for the IPO was set between SAR 150 and SAR 165 per share.

In June, the Capital Market Authority (CMA) approved the request of a fast-food restaurant company to offer 725,000 shares, representing 29% of the capital, on the Nomu parallel market.

Burgerizzr’s IPO is the first IPO on Nomu since February 2020, after the IPO of Sumou Real Estate Co.

The parallel market witnessed the direct listing of seven companies, represented by Riyadh Cement in September 2020, Watani Iron Steel in February 2021, Fesh Fash Snack Food Production Co. in May, Mohammed Hasan AlNaqool Sons Co. in June, National Chemical Fertilizer Co. in July, and Canadian Medical Center in August.

The categories of qualified investors are as follows:

1) Authorized persons who act for their own account.

2) Clients of a person licensed to conduct activities management with the provisions and restrictions set forth in the book-building instructions.

3) Government entities, any international body recognized by the CMA, the Exchange, or any other stock market recognized by the CMA, or the Depository Centre.

4) Government-owned companies, investing directly or through a portfolio manager.

5) Companies and funds established in the GCC

6) Investment funds

7) Non-resident foreigners who are permitted to invest in the parallel market and who fulfil the requirements stipulated in the investment guidelines.

8) Qualified foreign financial institutions.

9) Legal persons who will open an investment account in the Kingdom, and an account with the Depository Centre.

10) Natural persons allowed to open an investment account in the Kingdom and an account with the Depository Centre and fulfil any of the following criteria:

a) He/she has conducted transactions in the stock market of no less than SAR 40 million in total, and no less than 10 transactions in each quarter in the last 12 months.

b) Value of his/her net assets should be worth no less than SAR 5 million.

c) He/she works or has previously worked for at least three years in the financial sector.

d) He/she holds the General Securities Qualification Certificate, recognized by the CMA.

e) He/she holds a professional certificate specializing in securities business and accredited by an internationally recognized entity.

11) Any other persons prescribed by the CMA.

Company Profile:

The company was established as a sole proprietorship by its owner, Mohammad bin Ali Al-Ruwaigh, in Riyadh in 2009. It was converted into a limited liability company with SAR 1 million capital in 2013.

In 2019, Burgerizzr's capital increased by SAR 24 million by capitalizing the increase from retained earnings as of Dec. 31, 2018, to bring the company's capital to SAR 25 million. It was converted into a closed joint stock company, as per the resolution from the Ministry of Commerce.

Burgerizzr runs fast-food restaurants, specifically burgers. Its business also includes selecting branch locations, supply chain and branch operations.

The most important operations are based on the following points:

- Branch operations department: The company's branches reached 79 as of Dec. 31, 2020, distributed across the Kingdom.

- Central kitchen: The company has a supply department that manages the central kitchen and food preparation, which is considered the backbone of the supply operations for all branches.

- Marketing activities and various sale channels: The firm uses its marketing activities to communicate with customers.

- Care and quality-related operations

- Licenses-related operations: The company has a specialized department to follow up the licenses of the municipality and civil defense for all its branches and sale channels.

Burgerizzr depends on several main sales channels to complete the sale and deliver the product, namely point-of-sale (POS) and electronic channels such as call centers and delivery apps.

The company does not have any commercial activity outside the Kingdom and has no subsidiaries within or outside the Kingdom. In addition, it has not opened any branch overseas.

Mohammad bin Ali Al-Ruwaigh is the major shareholder of the company with a 43% stake.

The following table illustrates the details of owners before and after the offering:

For More IPOs