TASI opens Almajed Oud’s one-day retail IPO

Logo of Almajed For Oud Co.

Retail offering for 1.5 million shares of Almajed for Oud Co. on Tadawul begins today, Sept. 15, at a price of SAR 94 per share, which was determined through the book-building process. The offering continues for one day only.

The shares allocated to individual subscribers represent 20% of total shares offered for public subscription.

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In June 2024, the Capital Market Authority (CMA) approved Almajed Oud’s application to list and offer 7.5 million shares on TASI, representing 30% of its capital, with a nominal value of SAR 10 apiece.

Institutional offering ended last week, with a coverage ratio of 156.5 times.

Almajed Oud’s IPO is the eighth this year for the Main Market, after Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care Group) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28 and Rasan Information Technology Co. on May 29.

Tadawul witnessed eight IPOs in 2023, including MBC Holding Group Ltd., Morabaha Marina and Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co., First Milling Co., Lumi Rental Co., ADES Holding Co., and SAL Saudi Logistics Services Co.

Company profile

Founded in 1982 and headquartered in Riyadh, Almajed Oud currently has a capital of approximately SAR 250 million. The company is primarily engaged in the production and retail of perfumes, oud, incense, aromatic oils, plant-based products, accessories, and gifts.

The company offers more than 650 products under 132 brands through a network of 286 stores bearing the Almajed Oud brand, in addition to its online store and third-party e-commerce sites (among other means).

The company’s products:

According to the prospectus, the company has created more than 1,000 perfume products. It was offering 675 products in six categories to its customers, after adding a number of new products, including 24 products in 2020, 29 in 2021, 65 in 2022, and 87 in 2023, in addition to other planned projects to be launched in 2024.

The following table shows the main categories of products sold by the company, including brands, their number, and the number of items (SKUs) in each product category:

Company’s stores:

The company owns and operates 237 stores throughout the Kingdom, in addition to other 49 in the United Arab Emirates, Kuwait, Bahrain, and Oman.

The company's market share in the Saudi perfume market is about 5.2%, as shown in the table below:

Source: Euromonitor International data based on preliminary research 

Revenue:

The company’s revenues increased from SAR 442.5 million in 2021 to SAR 767 million in 2023, at a compound annual growth rate (CAGR) of 31%.

Perfumes represented 64% of revenues, while oud came in at 14.3%, as shown in the table below:

The company's stores account for 92.6% of total sales, while the online store represents about 4.1% of sales:

The bulk of the company's operations are in its local market in the Kingdom, however, the company has expanded its operations internationally. The following table includes the geographical distribution of the company's products offered and sold:

The prospectus indicated that the number of the company’s employees reached 1,863 employees by the end of 2023, including 809 Saudi citizens, as the Saudization rate during the period reached 57.7%.