Perfume maker Almajed Oud’s retail offering was 8.2x oversubscribed, drawing in SAR 1.16 bn in demand for 20% of the shares on offer at SAR 94 apiece, according to a filing to Tadawul from the offering’s financial advisor and lead manager BSF.

REMEMBER- Institutional investors booked 80% of the IPO earlier this month in an offering that was 15.6x oversubscribed. Strong investor appetite priced Al Majed Oud’s shares at the top of the range, giving it a market cap of SAR 24 bn upon listing.

What’s next? The final allocation of shares is due today, with excess subscription fees set to be refunded by next Tuesday, 24 September. The first day of trading is pending regulatory approval.

Background: Almajed for Oud is taking a 30% stake, or 7.5 mn shares, to Tadawul’s main market in a secondary share sale, according to the offering’s prospectus. The transaction is expected to raise up to SAR 705 mn in proceeds, with selling shareholders pocketing net proceeds after some SAR 25 mn are used to cover IPO-related expenses. They will not be able to sell down their positions for a period of six months from the first day of trading.

ADVISORS- BSF Capital is financial advisor and lead manager, while Baker Mckenzie is providing counsel to the issuer. Stat is counsel to the financial advisor, underwriter manager, institutional subscription manager and lead underwriter. PwC is running financial due diligence, while Euromonitor International is the market study advisor and BDO Dr. Mohamed Al Amri & Co is the independent financial auditor.

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