Baker McKenzie has advised Almajed Oud in connection with its initial public offering (IPO) on the Tadawul stock exchange, as appetite for listings in the Kingdom of Saudi Arabia continues apace.
The family-owned oud business offered a 30% stake, equivalent to 7.5 million shares, through the IPO.
Trading began on September 15, and lasted for one day.
The offering generated significant interest among institutional investors both in Saudi Arabia and internationally, leading to oversubscription by 156.5 times at a price of SAR 94 per share.
Baker McKenzie partners Karim Nassar and Hessa AlAiban led the team on the transaction, which also comprised counsel Samar Baharon and trainee associate Fatima Ashiri.
Nassar, who is the managing partner of Baker McKenzie’s Saudi Arabia office, said: “This transaction highlights the strong demand for Saudi companies in the capital markets, and we are delighted to have played a part in bringing such a distinguished local company to the public stage.”
AlAiban, who was recently promoted to the firm’s Saudi partnership, added: “This IPO marks a significant milestone for our client and reflects the growing investor appetite for Saudi businesses with a rich heritage and strong growth potential. We are honored to have been a part of this successful transaction and to have supported the company in achieving its capital market ambitions.”
Established in 1956, Almajed Oud is one of the leading manufacturers and developers of perfume and oud products in Saudi Arabia, with a growing presence across the GCC.
Almajed Oud hired BSF Capital as its sole financial advisor, lead manager, and book-runner, who was advised by STAT Law Firm.
Baker McKenzie has advised on a number of capital markets transactions in Saudi Arabia, including most recently the Modern Mills Company on its SAR 3.93 million (US$1.05 million) IPO.
In July, a number of prominent corporate lawyers at international law firms in Saudi Arabia told Law Middle East that IPO activity will remain strong in the second half of 2024. This followed analysis which showed that Saudi Arabia led the listing activity in the GCC with 19 public offerings in the first half of the year.
