Saudi Arabia’s Avalon Pharma to list 30% of its shares to boost expansion

Riyadh-based pharmaceutical company Avalon Pharma plans to list 30 per cent of its shares on the Tadawul stock exchange amid plans to expand globally.

The company said it will sell 6 million of its shares to the “participating parties” and individual investors. The final offer price will be determined at the end of the book-building process, between January 14 and January 18, it said.

If there is “sufficient” demand by individual investors, the number of shares initially allocated to “participating parties” will be reduced to 5.4 million, representing 90 per cent of the total offered shares, Avalon Pharma said.

“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 are now able to capture future growth and provide an opportunity for a greater number of stakeholders to share in our success.”

Avalon Pharma’s listing would be the latest in a string of initial public offerings on the Tadawul, the biggest Arab bourse by market value.

Last month, regional broadcaster MBC Group raised 831 million Saudi riyals ($222 million) in an IPO after pricing it at the top of the range. The company priced the offering at 25 riyals a share for its 10 per cent stake sale amid “robust investor demand”. The pricing valued the group at 8.3 billion riyals.

SAL Saudi Logistics Services Company began trading on Tadawul on November 1 after raising $678 million from its IPO.

Oil and gas drilling company Ades Holding raised $1.2 billion in the kingdom’s largest IPO of 2023.

Avalon Pharma, which began operations in 1998, is involved in the manufacturing and marketing of a variety of consumer health and beauty brands as well as generic prescription medicines.

“The market within the kingdom is changing rapidly and we are well-placed to capture future growth across the region,” said Mohammed Al Ghannam, managing director and chief executive of Avalon Pharma.

Saudi Arabia’s pharmaceuticals market is expected to reach $10.6 billion by 2028, from $8.9 billion in 2022, market research company Imarc Group said.