Saudi Arabia’s Avalon Pharma sets IPO price range

Saudi Arabia pharma giant Middle East Pharmaceutical Industries Company, also known as Avalon Pharma, has set the price for its planned initial public offering (IPO) on the Saudi Exchange.

“The price range for the offering has been set between SAR78 – 82 per share,” Avalon Pharma said in a statement.

The pharmaceutical firm said the final offer price will be determined following a January 14-18 book-building period.

Avalon Pharma received approval from the Capital Market Authority to offer six million shares, representing 30 per cent of the company’s issued share capital.

Founded in 1998, Avalon Pharma is one of the biggest pharmaceutical manufacturers in Saudi Arabia with more than 70 brands, and 250 stockkeeping units and exports its products to over 10 countries across the Middle East and North Africa.

The company reported revenues of SAR276.7m in 2022 and it grew at a revenue CAGR of 9 per cent from 2019-2022. Its main activities include the development, manufacturing, and marketing of consumer health and beauty brands as well as generic prescription medicines.

Aldukheil Financial Group has been appointed financial adviser and bookrunner for the IPO while Alinma Investment is acting as lead manager.

Avalon Pharma joins Saudi IPO frenzy

Meanwhile, healthcare firms have increasingly been listing in Saudi Arabia as the stock exchange expands the universe of companies traded on the bourse from mainly banks and petrochemicals firms.

Saudi generic drugmaker Jamjoom Pharmaceuticals raised $335m in an IPO last May and its shares have since doubled.

Almoosa Health Group, a Saudi Arabian healthcare provider that operates a network of 750 patient beds across the eastern province of the kingdom, is reportedly considering listing on the local bourse. The country’s largest medical procurement firm, Nupco, has also held discussions with advisers about a potential listing, according to a Bloomberg report.

The Saudi Export Development Authority-backed Avalon Pharma unveiled plans to continue its advancement with a multi-pronged international expansion plan in November.

With a target to boost total exports from 10 per cent to 30 per cent by 2030, the home-grown pharmaceutical firm said its ambitious expansion plan will leverage its 25-year history in Saudi Arabia by aiming at new international markets.

Read: Saudi Arabia’s Avalon Pharma partners with AlUla Peregrina Trading