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Saudi Arabia’s Al Majed for Oud to sell 30% stake in Riyadh IPO

The perfume retailer is offering 7,500,000 shares to investors—equivalent to 30 per cent of the company’s paid-up capital

by Kudakwashe Muzoriwa

August 20, 2024

Al Majed for Oud to list 30% stake in Riyadh

Image credit: Havelock One/ Website

Saudi Arabian perfume retailer Al Majed for Oud Company plans to sell a 30 per cent stake through an initial public offering (IPO) on the Saudi Exchange (Tadawul), as the appetite for listings in the GCC region remains healthy.

Al Majed for Oud, one of the leading companies in the kingdom’s fragrance market, is offering 7,500,000 shares to investors—equivalent to 30 per cent of the company’s paid-up capital. This follows the approval received from the Capital Market Authority (CMA) in June 2024.

The family-owned business said the offering price will be determined at the end of a book-building process. It is offering the shares in two tranches — institutional investors and retail investors— between August 25 and September 19.

Al Majed for Oud said the offering proceeds shall be distributed to the selling shareholders after the deduction of the offering expenses. It has hired Saudi Fransi Capital as its sole financial adviser, joint book-runner, and lead manager.

Founded by Sheikh Ali bin Othman Al Majed in 1956, Al Majed for Oud has 286 stores and offers more than 650 products across 132 brands as of December 31, 2023.

“Today marks a new milestone as we announce our intention to list on the Saudi Exchange’s Main Market. This listing is driven by a strategic ambition to diversify our investor base and strengthen our business operations to accelerate our growth and expansion strategy both locally and internationally,” said Waleed Al Majed, managing director and CEO of Al Majed for Oud.

The perfume retailer plans to expand its presence in the kingdom and the GCC while enhancing its retail and digital platforms to keep pace with industry developments.

Al Majed for Oud’s revenues reached SAR767m in 2023, growing at a CAGR of 31.7% from SAR442.5m in 2021. Its profit in 2023 rose by as much as 66.6 per cent.

The MENA region’s listing activity remained resilient in Q2 2024, with 14 IPOs raising $2.64bn in proceeds, according to EY. Saudi Arabia led the listing activity with 11 public offerings, five of which were on the Tadawul.