Logo of Al-Dawaa Medical Services Co.
Retail investors start today, Feb. 27, subscription to about 2.55 million shares of Al-Dawaa Medical Services Co., or 10% of total offered shares, at SAR 73 each, as set by the book-building process.
In December, the Capital Market Authority (CMA) approved the company's request to list a 30% stake, or 25.5 million shares on Tadawul.
The retail tranche subscription process will run for three days till March 1.
The company’s institutional offering, which ended last week, was 53.8x covered.
Al-Dawaa's IPO will be the fourth to be seen on Tadawul's main market this year, after Elm Co. on Feb. 3, East Pipes Integrated Company for Industry on Jan. 24, and the IPO of Scientific & Medical Equipment House Co. on Jan. 31, 2022.
Last year witnessed nine IPOs, including Alkhorayef Water and Power Technologies Co., Theeb Rent a Car Co., Tanmiah Food Co., solutions, International Company for Power and Water Projects (ACWA Power), Arabian Contracting Services Co. (Al Arabia), Nayifat Finance Co., Saudi Tadawul Group and Almunajem Foods Co.
Company Profile
The company was established 1991 as a sole proprietorship in the name of Mohammed Saad Al Faraj Commercial Services Est. One of its branches called AlDawaa Pharmacies was converted to a limited liability company in 2001.
In 2021, the company converted into a closed joint-stock company, under the name Al-Dawaa Medical Services Co., whose capital currently stands at SAR 850 million, divided into 85 million shares.
The company's main activity is focused on retail sale of pharmaceuticals. It undertakes and performs real estate activities, professional, scientific and technical activities, management consultancy activities, construction, education, and administrative and support services.
The company's manufacturing activities include the manufacture of pharmaceutical materials, chemical, and plant-based pharmaceutical products; manufacture of radioactive equipment, and medical electric devices; manufacture of medical and dentistry tools and equipment; repair of electronic and optical equipment.
The company also operates in transportation and storage, wholesale and retail trade; repair of motor vehicles and motorcycles.
The company owns 837 pharmacies situated in 13 administrative regions and 130 cities, provinces and governorates in the Kingdom. The company’s pharmacies include more than 27,000 products and 2,000 brands
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Pharmacies Network |
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Province |
No. of pharmacies |
Percentage of total revenues |
|
Eastern Province |
350 |
41% |
|
Central Province |
242 |
28% |
|
Northern Province |
119 |
14% |
|
Western Province |
73 |
10% |
|
Southern Province |
53 |
7% |
The company's pharmacies account for 14% of the market share in Saudi Arabia, based on revenue estimates for 2019.
The company has a fleet of more than 600 trucks and vehicles, which operate with state-of-the-art technology, tracking and routing systems.
It has two subsidiaries in the UAE and two others in Germany.
Al-Dawaa Medical Services Co. – Dubai: A 100%-owned subsidiary with AED 100,000 capital, which operates in marketing activity.
Glanzzen – Dubai: A 50%-owned subsidiary with AED 100,000 capital, which operates in marketing and healthcare management consultancy.
Höllinz – Germany: A 100%-owned subsidiary with EUR 25,000 capital. It operates in the award of licenses for marketing pharmaceutical products, consumer goods and foodstuff.
Rönzac – Germany: A 100%-owned subsidiary with EUR 25,000 capital. It operates in the award of licenses for marketing pharmaceutical products, consumer goods and foodstuff.
The company has 6,014 employees, including 1,815 Saudis and 4,199 non-Saudis.
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Company Profile |
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Company |
Al-Dawaa Medical Services Co. |
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Market |
Main market |
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Core Activities |
Sale of pharmaceuticals |
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Capital |
SAR 850 mln |
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Number of shares |
85 mln |
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IPO Summary |
|
|
Issue percentage (%) |
30% |
|
Number of shares offered |
25.5 mln |
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Number of shares offered for retail investors |
2.55 mln shares, or 10% of total offered shares |
|
Offering price per share |
SAR 73 |
|
Qualified subscribers |
Retail investors |
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IPO minimum limit for retail investors |
10 shares |
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IPO maximum size for retail investors |
250,000 shares |
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Retail subscription period |
Three days, starting from Feb. 27, till March 1, 2022. |
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Final allotment |
March 9, 2022 |
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Surplus refunds |
March 9, 2022 |
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Special Information |
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Financial advisor, lead manager, main underwriter and book runner |
GIB Capital |
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Co-underwriters |
Alinma Investment, ANB Invest |
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Receiving banks |
Saudi National Bank, Saudi British Bank, Al Rajhi Bank, Riyad Bank |
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Company Shareholders |
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Shareholders |
Before IPO |
After IPO |
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Number of shares (mln shares) |
Ownership (%) |
Number of shares (mln shares) |
Ownership (%) |
|
|
Mawarid Holding Company |
42.50 |
50% |
29.75 |
35.00% |
|
Prince Turki bin Mohammed bin Fahad bin Abdulaziz Al Saud |
20.40 |
24% |
11.69 |
13.75% |
|
Mohammed Saad Butti Al-Farraj Al-Subaie |
7.86 |
9.25% |
6.80 |
8.00% |
|
Abdullah Saad Butti Al-Farraj Al-Subaie |
7.86 |
9.25% |
6.80 |
8.00% |
|
Waleed Mohammad Abdullah Al-Jaafari |
2.13 |
2.5% |
1.06 |
1.25% |
|
Hussah Saad Butti Al-Farraj Al-Subaie |
2.13 |
2.5% |
1.70 |
2.00% |
|
Nouf Saad Butti Al-Farraj Al-Subiye |
2.13 |
2.5% |
1.70 |
2.00% |
|
Others* |
-- |
-- |
-- |
-- |
|
Public |
-- |
-- |
25.50 |
30% |
|
Total |
85.00 |
100% |
85.00 |
100% |
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