Saudi Arabia’s Avalon Pharma plans to list 30% on Tadawul

Saudi Arabia pharma giant Middle East Pharmaceutical Industries Company, also known as Avalon Pharma, said Sunday that it plans to sell a 30 per cent stake through an initial public offering (IPO) on the Saudi Exchange (Tadawul).

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

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

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

Ahmed Tabbaa, founder and chairman of Avalon Pharma said with the IPO, the company will now be able to capture future growth.

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’s growth strategy

Meanwhile, 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.

The company plans to continue to introduce its health and prescription medicine expertise across the GCC and beyond, driven by an emphasis on innovation, research and development.

Its expansion strategy is to refocus efforts in these markets through partnerships with distributors specific to each market.

The Saudi Export Development Authority-backed Avalon Pharma, which is being backed by the has made considerable advancements by targeting its focused markets – the six countries of the GCC and Iraq.

Read: Saudi Arabia’s Avalon Pharma sets eyes on global expansion