Saudi Arabia’s home-grown pharmaceutical manufacturing company Avalon Pharma plans to list 30% of its shares on Tadawul.
The book-building period for the IPO is scheduled to run from January 14 to January 18, 2024, determining the final offer price for the 6 million ordinary shares, around 30% of the company’s issued share capital of 20 million shares.
Upon completion of formalities with the CMA and the Saudi Exchange, the company’s shares will be listed on the Saudi Exchange’s Main Market following the IPO. The offering will be accessible to Participating Parties and Individual Investors. Initially, Participating Parties will have access to 6 million offer shares, but this may reduce to 5.4 million shares (representing 90% of the total Offer Shares) if there is substantial demand from Individual Investors.
“We are a true success story within the Kingdom, having developed and expanded significantly during this time, venturing into new areas and products as we have adapted to, and anticipated, market demand,” said Ahmed Tabbaa, Founder and Chairman of Avalon Pharma. “In listing on the Saudi Exchange, we can now capture future growth and provide an opportunity for more stakeholders to share in our success.”
Avalon Pharma, established in 1998 as a Saudi joint-stock company, specialises in developing, manufacturing, and marketing a diverse range of consumer health and beauty brands and generic prescription medicines. Headquartered in Riyadh, the company exports its products to over ten countries in the Middle East and North Africa. It has emerged as one of Saudi Arabia’s fastest-growing consumer pharma firms.
With over 70 brands and 250 SKUs, Avalon Pharma focuses on dermatological, respiratory, neurology, and musculoskeletal products. Notably, the company commands an 8.9% market share in the dermatological products market and a 9.1% share in the respiratory therapeutic category in Saudi Arabia.
“Since its foundation, the Company has built a reputation through the quality of its products and as one of the fastest growing pharmaceutical companies in Saudi Arabia,” said Mohammed Maher AlGhannam, MD & CEO of Avalon Pharma. “The market within the Kingdom is changing rapidly, and we are well placed to capture future growth across the region as we have shown over the years through our ability to address the market needs.”
Avalon Pharma boasts significant manufacturing capacity and a widespread warehouse network in Saudi Arabia, including three manufacturing and R&D facilities and four warehouses. Recently, the company completed a substantial expansion, doubling its manufacturing capacity, slated to commence production by the second quarter of 2024.
