Logo of Alsaif Gallery
Retail investors will start today, Dec. 5, subscription to about 1.05 million shares of Al-Saif Stores for Development & Investment Co. (Alsaif Gallery), or 10% of total offered shares, at SAR 115 each, as set by the book-building process.
The subscription process for the retail tranche will run for two days, until Dec. 6.
The Capital Market Authority (CMA) approved on Sept. 28 the company's request to float a 30% stake, or 10.5 million shares, in an initial public offering (IPO).
The company’s institutional offering, which ended last week, was 1,550% covered.
This will be the 16th listing on the main market this year, after East Pipes Integrated Company for Industry (Jan. 24), Scientific & Medical Equipment House Co. (Jan. 31), Elm Co. (Feb. 3), Al-Dawaa Medical Services Co. (Feb. 27), Al Masane Al Kobra Mining Co. (March 9), Nahdi Medical Co. (March 13), Saudi Home Loans Co. (March 27), Retal Urban Development Co. (June 5), Alamar Foods (July 20), Naqi Water Co. (July 27), Arabian Drilling Co. (Oct. 18) and Power and Utility Company for Jubail and Yanbu (MARAFIQ) (Oct. 26), Perfect Presentation for Commercial Services Co. (2P) (Nov. 1), Americana Restaurants International Plc (Americana Restaurants) (Nov. 14), and Riyadh Cables Group Co. (Nov. 21).
Last year witnessed nine listings, including Alkhorayef Water and Power Technologies Co. (March 1), Theeb Rent a Car Co. (March 29), Tanmiah Food Co. (Aug. 4), Arabian Internet and Communications Services Co. (solutions) (Sept. 30), ACWA Power (Oct. 11), Arabian Contracting Services Co. (Nov. 15), Nayifat Finance Co. (Nov. 22), Saudi Tadawul Group (Dec. 8) and Almunajem Foods Co. (Dec. 20).
Company Profile
Established in Riyadh on June 9, 1993, the company currently operates in retail sale of home utensils. It operates 58 stores in 29 Saudi cities, under Al-Saif Gallery branch, in addition to an online store that target clients in Saudi Arabia and the GCC.
Al Saif Gallery opened its first store in 2006. It operates in the field of kitchen gadgets, electrical appliances and household products.
The planned-to-be-offered stake represents 30% of the company’s share capital reaching 35 million shares.
Company Stores
Alsaif Gallery has 58 branches across five regions covering most cities and governorates of the Kingdom as of March 31, 2022.
The company opened 24 new branches during 2019 and 2021, and two branches in the three-month period ending on March 31, 2022, of which 26 branches are registered with the Ministry of Commerce.
It also owns two warehouses in Riyadh to support its stores and supply them with products and goods, with a total area of more than 35,000 square meters.
|
Stores’ Revenues by region (excluding online store) |
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|
Region |
2021 |
Q1 2022 |
||
|
No. of Stores |
Revenues (%) |
No. of Stores |
Revenues (%) |
|
|
Central |
21 |
35.2% |
21 |
36.2% |
|
western |
14 |
29.9% |
15 |
25.9% |
|
Eastern |
10 |
16.6% |
10 |
17.2% |
|
Southern |
7 |
12.0% |
8 |
13.8% |
|
North |
4 |
6.3% |
4 |
6.9% |
|
Total |
56 |
100% |
58 |
100% |
Market Share
The company's market share amounted to about 27.1% of the small household appliances sector in the Kingdom.
Also, it controlled 39% of the cooking supplies and serving tools sector for 2021.
|
Alsaif Gallery’s Market Share in Small Home Appliances Sector (2021) |
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|
Company |
No. of Stores |
Owned Brand |
Market Share |
Rank |
|
eXtra |
47 |
Class Pro |
27.8% |
1 |
|
Alsaif Gallery |
56 |
Edison, iCafe |
27% |
2 |
|
SACO |
34 |
Homix |
15.5% |
3 |
|
Eddy |
28 |
- |
9.4% |
4 |
|
Al Manea |
19 |
- |
5.6% |
5 |
|
Other companies |
- |
- |
14.5% |
- |
|
Alsaif Gallery's Market Share - 2021 |
|||
|
Company |
No. of Stores |
Market Share (Retail Sale Price) |
Rank |
|
Alsaif Gallery |
56 |
39% |
1 |
|
Qasr Al Awani |
47 |
14% |
2 |
|
SACO |
34 |
12% |
3 |
|
Nice |
10 |
11% |
4 |
|
IKEA |
4 |
9% |
5 |
|
Other companies |
- |
7% |
- |
|
Saudi Exchange (Tadawul) |
|
|
Retailing of home appliances and kitchenware |
|
|
SAR 350 mln |
|
|
35 mln |
|
|
IPO Summary |
|
|
Issue Percentage |
30% |
|
Offering Price |
SAR 115 |
|
Number of Shares Offered |
1.05 mln shares (10% of total offering) |
|
Qualified Subscribers |
Retail investors |
|
Minimum Limit for Retail Investors |
10 shares |
|
Maximum Size for Retail Investors |
250,000 shares |
|
Retail Offering |
From Dec. 5 to Dec 6, 2022 |
|
Final Allocation |
Dec. 14, 2022 |
|
Surplus Refunds |
Dec. 14, 2022 |
|
Special Information |
|
|
Financial Advisor, Lead Manager, Underwriter and Book Runner |
Saudi Fransi Capital |
|
Receiving Banks |
Banque Saudi Fransi - Saudi National Bank |
Sulaiman bin Mohammed bin Saleh Al-Saif is currently the company’s Chairman, who owns 92.5% of Alsaif Gallery’s shares before the offering.
Following the IPO, Sulaiman Saleh Al-Saif’s ownership will decrease to 62.5%. The following are the details of the company's major shareholders:
|
Major Shareholders |
||||
|
Shareholders |
Pre-IPO |
Post-IPO |
||
|
Number of Shares (‘000 shares) |
Ownership (%) |
Number of Shares (‘000 shares) |
Ownership (%) |
|
|
Suleiman bin Muhammad bin Saleh Alsaif |
22375 |
92.5% |
21875 |
62.5% |
|
Heila Abdullah Saleh Alsaif |
350 |
1.0% |
350 |
1.0% |
|
Ahmed Suleiman Muhammad Alsaif |
350 |
1.0% |
350 |
1.0% |
|
Muhannad Suleiman Muhammad Alsaif |
350 |
1.0% |
350 |
1.0% |
|
Haitham Suleiman Muhammad Alsaif |
350 |
1.0% |
350 |
1.0% |
|
Muhannad Suleiman Muhammad Alsaif |
350 |
1.0% |
350 |
1.0% |
|
Asma Suleiman Muhammad Alsaif |
175 |
0.5% |
175 |
0.5% |
|
Maha Suleiman Muhammad Alsaif |
175 |
0.5% |
175 |
0.5% |
|
Manal Suleiman Muhammad Alsaif |
175 |
0.5% |
175 |
0.5% |
|
Ibtihal Suleiman Muhammad Alsaif |
175 |
0.5% |
175 |
0.5% |
|
Alaa Suleiman Muhammad Alsaif |
175 |
0.5% |
175 |
0.5% |
|
Public |
-- |
-- |
10500 |
30% |
|
Total |
35000 |
100.00% |
35000 |
100.00% |
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