Avalon Pharma debuts today as 2nd listing on TASI in 2024

Logo of Middle East Pharmaceutical Industries Co. (Avalon Pharma)

Middle East Pharmaceutical Industries Co. (Avalon Pharma) starts trading on the main market (TASI) today, Feb. 27, under the symbol 4016 and ISIN code SA160G51UO10, at SAR 82 per share.

The stock will have daily and static price fluctuation limits of ±30% and ±10%, respectively. These limits will apply during the first three days of listing, and from the fourth trading day onwards the daily price fluctuation limits will revert to ±10%, while the static price fluctuation limits will no longer apply.

For More IPOs

This is the second listing on Saudi Arabia’s main market in 2024, after MBC Holding Group Ltd. listed on Jan. 8.

Last year, seven companies listed on Tadawul, namely, Al Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma), Morabaha Marina Financing Co. (MRNA), First Milling Co., Lumi Rental Co., ADES Holding Co. and SAL Saudi Logistics Services Co., besides the listing of Alinma Hospitality REIT Fund.

With the listing of Avalon Pharma, the number of companies listed on TASI reached 215, excluding real estate traded funds, which amount to 18.

The company offered six million shares, or 30% of its capital, at SAR 82 per share, of which 10% were allocated to retail investors and 90% to institutional investors.

The retail offering was 54.3x covered, while the institutional offering was 138.7x covered.

The number of retail subscribers was 807,500 with a total value of orders of SAR 2.67 billion.

A minimum of two shares were allocated per individual subscriber, and the remaining shares will be distributed pro rata, with an allocation factor of 0.095%.

Company Highlights:

Avalon Pharma was established as a limited liability company in 1998 in Riyadh with a capital of SAR 500,000. In 2022, the company converted into a closed joint stock company, and its current capital is SAR 200 million.

The company develops, manufactures, markets, and distributes a range of pharmaceutical and generic medicines in Saudi Arabia and abroad through a diverse, high-quality product portfolio covering several therapeutic categories.

According to the company's commercial register, its activities include disinfectants and sterilizers for medical devices and products. This is in addition to producing disinfectants and sterilizers for non-medical use, as well as cosmetics and pharmaceutical preparations for human use.

Avalon Pharma generates revenue primarily from medicines and skincare products, as well as respiratory medicines, through its more than 70 brands.

According to Euromonitor International's market study, Avalon Pharma had the largest market share of dermatological products, medicines, and skincare products in the Kingdom at 8.9%, as well as the fourth largest share of the respiratory medicine market at 9.1%.

The company is constantly studying investment opportunities in the field of manufacturing medicines and healthcare products to provide a range of healthcare and physical solutions.

Over the past years, it has succeeded in investing in a large number of products to boost its portfolio, develop the product assortment, and enter additional therapeutic categories by launching new brands.

Avalon Pharma’s sales extend outside the Kingdom to many countries in the Gulf, the Middle East, and Africa, mainly Kuwait, UAE, Jordan, Iraq, Yemen, Bahrain, Lebanon, Egypt, Sudan, and Libya.

The company's revenues from foreign sales amounted to about SAR 26.1 million by the end of 2022, constituting 8.6% of the company’s total revenues.

Avalon Pharma has a wholly owned subsidiary in the UK, Avalon Pharma UK Holdings Limited, which in turn owns three subsidiaries.