Saudi retailer BinDawood Holding announced on Monday its plan to sell 22.86 million shares, listing 20 percent of the company’s capital on Saudi Stock Exchange, Tadawul.
The company obtained Tadawul’s approval to list its shares in February 2021, provided that the final share price is determined at the end of the book-building period.
In June 30, the Capital Market Authority (CMA) approved BinDawood’s request to sell 20 percent of its capital in an initial public offering (IPO).
BinDawood Holding has 73 stores, of which 51 are hypermarkets and 22 are supermarkets, making it the third-largest grocery retail operator in the Kingdom by revenue as of December 31, 2019.
It operates mass mid-market supermarket chain BinDawood and high-end grocery brand Danube.
According to CEO Ahmad Abdulrazzaq BinDawood, the company has a rich history in the field of serving pilgrims Makkah and Madinah cities.
“It also enjoys a set of components that qualify it to seize the growth opportunities available in the sector, including our strong financial position, our excellent relationships with suppliers and our strategic network of stores.”
“Given the positive trend of the Saudi grocery retail sector, we believe our IPO will give new investors a solid platform for future capital growth,” BinDawood noted.
He told Asharq Al-Awsat that the company will distribute the IPO proceeds to the current shareholders
The company doesn’t necessarily need the IPO proceeds to implement any expansion plans since it currently enjoys a strong financial position and does not have any debts, he added.
In his response to a question on the possible expansion outside the Kingdom’s market, BinDawwod said: “Despite our ambition to become a leading retail brand in the GCC, yet the company currently focuses on expanding within the Kingdom by opening new branches.”
“We opened four stores during H1 2020, and we plan to open another one during the second half of the year.”
