Marketing Home Group sets IPO price range at SAR 80-85 a pop

Marketing Home Group (MHG) set the indicative price range for its Tadawul IPO at SAR 80-85 per share, kicking off the book-building process for institutional investors, according to a disclosure. The offering will see the company sell a 30% stake, equivalent to 4.8 mn shares, in a secondary sale.

Proceeds + market cap: At the top end of the price range, the IPO would raise SAR 408 mn, giving the company an implied market capitalization of SAR 1.36 bn at listing, according to our calculations.

Institutional investors have until Thursday, 7 August, to book a minimum of 50k shares and a maximum of roughly 800k shares each. Meanwhile, retail subscription is scheduled for 19-20 August, with investors able to request 10-250k shares each, and final allocations are due on 24 August. The IPO will initially be fully allocated to institutional investors, including 30% reserved for public funds, with a 20% clawback for retail investors if there is sufficient demand.

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

Receiving agents include our friends at EFG Hermes KSA, Alrajhi Capital, SNB Capital, Saudi Fransi Capital, Riyad Capital, AlBilad Investment, AlJazira Capital, Derayah Financial, ANB Capital, Yaqeen Capital, and Al Khabeer Capital, among others.

ALSO IN THE PIPELINE-

• Dar Al Majed’s IPO saw its institutional tranche fully booked within minutes last week.
• Meanwhile, IT firm Ejada Systems, which missed its six-month IPO window, is set to resubmit an IPO application to the CMA;
• 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.