Marketing Home Group stumbles on debut despite robust IPO demand

Marketing Home Group’s (Build Station) stock slipped 4.9% compared to its debut price, to closing at SAR 80.8 a pop on its Tadawul debut yesterday, reverting back to a broader trend of slumping IPOs that Sports Clubs had briefly bucked with a 24% jump on debut. The stock saw a high of SAR 93 in intraday trading and a low of SAR 77.5. More than 6.6 mn shares changed hands during the day, generating a total turnover of SAR 564.3 mn.

Heavy churn: Trading volumes in the first day surpassed the number of shares offered in the IPO (4.8 mn), reflecting heavy churn as early investors rushed to take profits. The lower close underscores that initial demand did not carry through into the secondary market, hinting that the offer price may have left little upside on debut.

REFRESHER- The firm floated a 30% stake in a secondary offering, with the retail tranche 200% covered and the institutional tranche nearly 10x oversubscribed. The company raked in SAR 408 mn in total proceeds from the offering, giving the company an implied market cap of SAR 1.36 bn at listing. Shares were priced at the top of the marketed range at SAR 85 apiece.

Usual caps apply: The trading group’s shares will be allowed to fluctuate within a 30% range, with a static band of 10% for the first three trading days. Starting from the fourth day, shares will be allowed to trade at a 10% volatility as circuit breakers kick in.

Dividends: The company’s board recommended distributing SAR 24 mn in dividends for 1H2025, and SAR 48 mn for FY 2024, it said in two separate filings to the bourse.

ADVISORS- Alinma Capital quarterbacked the transaction as financial advisor, lead manager, bookrunner and underwriter, with Stat Law Firm providing counsel. PwC Public Accountants acted as financial due diligence advisor, while Euromonitor International served as market consultant.

ALSO IN THE PIPELINE-

• Dar Al Majed’s retail subscription closed 2.8x oversubscribed earlier last week;
• Cherry Trading was the latest to secure approval from the Capital Market Authority to IPO a 30% on the main market;
• Meanwhile, IT firm Ejada Systems, which missed its six-month IPO window, is set to resubmit an IPO application to the CMA;
• Local contractor Mutlaq Al Ghowairi Contracting (MGC) and fast delivery app Ninja are said to be considering a Tadawul IPO as early as next year
• Meanwhile, fintechs Emkan Finance and Tamweel Aloula are also rumoured to be eyeing main market IPOs;
• Coldchain manufacturer Consolidated Grunenfelder Saady Holding got the regulators’ all-clear to float a 30% stake on Tadawul;
• PIF-backed Saudi Global Ports, Tabreed District Cooling, Medical procurement firm Nupco, Riyad Capital, and BNPL platform Tabby are among companies that tapped banks for potential IPOs;
• F&B players Barns, Half Million, Deemah, and Hashi Bashi are said to be sounding out banks for potential debuts on the main market;
• Almosafer is preparing for a public listing on Tadawul by late 2025 or early 2026;
• PIF-backed CloudKitchens is reportedly eyeing an IPO in the Kingdom or the UAE (or both);
• Meal subscription startup Calo is also said to be eyeing an IPO here at home by 2027.