KSA’s first home-grown coffee brand might be IPO-ing: Specialty coffee brand Barn’s is planning go to market with an initial public offering in 2024, World Coffee Portal reported yesterday, citing statements by brand owner Al Amjaad Group CEO Mohamed Al Zain at the coffee chain’s annual franchise meeting in Jeddah.

Details are still scant: Al Zaid did not provide details on the planned IPO or how much it is planning to raise from the offering. However he said it would pave the way for the public “to move from loyal customers to investors in the company’s success.”

Heading to the main market, not Nomu? Given the size of the company’s branch network alone, we’d expect turnover and governance to be in place to allow it to list on Tadawul, rather than the regulation-light parallel market Nomu, which targets smaller businesses at an earlier stage of growth.

Big growth plans: Barn’s is targeting 1k stores globally by 2030, driven by expansions in the Mideast and planned ventures into the UK, US, and Malaysia, according to the report.

About Barn’s: Founded in 1992, Barn’s operates over 550 stores across the kingdom, with more than 70% of the stores franchised. It is the kingdom’s second largest operator behind US brand Dunkin’, according to the report.

BACKGROUND- The kingdom’s IPO market picked up pace starting this summer and has continued to perform well despite jitters in regional capital markets sparked by Israel’s war with Hamas.

Sound smart: IPOs in Saudi Arabia raised USD 3.2 bn (not including the in-progress MBC offering). That’s down 53% y-o-y, according to data compiled by Bloomberg. Saudi IPOs still account for over a third of all proceeds from listings in Europe, the Middle East and Africa, according to the data.

This year’s home run (so far): Drugmaker Jamjoom Pharma pulled off the largest IPO on Tadawul since Aramco’s listing. Sellers raised SAR 1.26 bn. Regional broadcaster giant MBC Group is seeking to raise north of SAR 830 mn from the sale of a 10% stake. In the first hour of bookbuilding last week, bankers brought in more orders than shares available for the IPO, signaling a robust demand.

Tags: