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Avalon Pharma retail tranche subscription sees strong demand, covered 54.3 times.

Avalon Pharma retail tranche subscription sees strong demand, covered 54.3 times.

Middle East Pharmaceutical Industries Company (“Avalon Pharma” or the “Company”, or the “Issuer”), one of the fastest growing home-grown pharmaceutical manufacturing companies in the Kingdom of Saudi Arabia (“KSA” or the “Kingdom”), today announces the successful completion of the offering period for retail investors (“Retail Subscription Period”) for the Company’s Initial Public Offering (“IPO” or the “Offering”).

The retail subscription process, comprising of a maximum of 600,000 shares, representing 10% of the total Offering shares, commenced on Tuesday 30 January 2024 and ended on Thursday 1 February 2024. It witnessed a number of 284,739 applications by primary subscribers for a number of 807,467 investors (primary subscribers and dependents), indicating a coverage of 54.3 times, with a total demand of SAR 2.67 billion (USD 712.1million)[1]. Primary subscribers will receive a minimum of (2) shares each, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of around 0.095% for each application from their subscribed shares.

The Final Offer Price for the Offering has been set at SAR 82 per share, implying a market capitalization of SAR 1.64 billion (USD 437.33 million) at listing.

Based on the results of the retail subscription process, the shares allocated to Participating Parties will be reduced to 5,400,000 Offer Shares, representing 90% of the total Offering.

The Company’s prospectus includes all details of the IPO – for additional details please visit the Company’s IPO website “ipo.avalonpharmaceutical.com” or the website of the financial advisor www.aldukheil.com.sa or the website of CMA www.cma.org.sa.

BACKGROUND TO THE OFFERING

·         On 6 December 2023, the Capital Market Authority (“CMA”) approved the Company’s application for the offering of 6,000,000 shares (the “Offer Shares”), representing 30% of the Company’s issued share capital, by way of a sale of existing shares by selling shareholders.

·         With respect to the Offering, the Company has appointed Aldukheil Financial Group (“Aldukheil”) to act as Financial Advisor and Bookrunner (“Financial Advisor and Bookrunner”).

·         Alinma Investment has been appointed as Lead Manager (“Lead Manager”), and Alinma Bank and SNB have been appointed as receiving agents (collectively, the “Receiving Agents”).

·         The CMA and Saudi Exchange approvals have been obtained for the offering and listing as outlined below:

  • Avalon Pharma to register its shares and offer of 6,000,000 Ordinary Shares representing 30% of the Company’s issued share capital of 20,000,000 shares by way of a sale by the current shareholders.
  • The Shares will be listed on the Main Market of the Saudi Exchange following the completion of the Offering and listing formalities with the CMA and Saudi Exchange.
  • The Current Shareholders are subject to a lock-up period of six months, which will begin from commencement of trading of the Shares on the Saudi Exchange.
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