Dawar Al Saada eyes Tadawul IPO by 2027-end: CEO

Dawar Al Saada’ chain currently operates 175 branches inside Saudi Arabia and five internationally, bringing the total to 180 outlets

Saudi-based restaurants chain Dawar Al Saada intends to go ahead with an initial public offering (IPO) on Tadawul or attract external investors. It is currently working along this track, with the IPO file expected to be ready by the end of 2027, said CEO Abdulilah Al-Aiban.

In statements to Aleqtisadiah newspaper, Al-Aiban said the Dawar Al Saada’ chain currently operates 175 branches inside Saudi Arabia and five internationally, bringing the total to 180 outlets.

He added that Dawar Al Saada chain continued its rapid expansion both domestically and internationally, opening 81 restaurants in 2025. The company also plans to open between 45 and 55 new branches in 2026, covering both local and regional expansion.

Additionally, the direct in-branch orders are more profitable compared to orders placed through delivery applications due to high commission fees charged by platforms. Profitability via apps improves if prices are increased beyond the commission rate; however, the preferred option for the company is customers purchasing directly at the base price. Online sales account for between 20% and 30% of total profits, Al-Aiban stated.

He stated that Dawar Al Saada’s profits reached nearly SAR 44 million by the end of 2025, with profit margins ranging between 25% and 30%.

The company has around 30 partners, all of whom are financial investors without operational or managerial roles. One investor recorded profits exceeding SAR 5 million from an initial investment of SAR 30,000, having entered during the founding stage when the share valuation was SAR 10,000 before rising to SAR 3.75 million, according to the top executive.

The CEO also revealed that the company divested a 40% stake in favor of institutional investors and private funds, preferring this option over an IPO at that stage. “The deal was appropriate and rewarding for the company, with the stake sold at a valuation of SAR 370 million,” he said.