Saudi pharma retail chain plans IPO

Al Dawaa Medical Services Co., one of the largest pharmaceutical retail companies in Saudi Arabia, is seeking to raise about $500 million from an IPO as more family-owned businesses list in the kingdom.

The initial public offering’s price range has been set at 65 riyals ($17.33) to 73 riyals, according to a statement. Institutional bookbuilding for 25.5 million shares will start Sunday and ends Thursday, with a three-day subscription period for individual investors starting Feb. 27.

Share sales in Saudi Arabia have seen huge investor demand in the past year, with most IPOs getting priced at the top of offering ranges and then the shares surging on their trading debut. The Saudi benchmark index has jumped about 9 per cent this year, extending its 2021 gains of 30 per cent.

Al Nahdi Medical Co., the kingdom’s largest pharmacy retail chain, plans to seek about $1.3 billion in an IPO in the next few months in what could be the largest share sale in the kingdom since state oil giant Saudi Aramco went public in 2019.

An increasing number of Saudi family businesses are also capitalising on soaring demand for stocks and testing the equity markets.