Alsaif Gallery founders do not plan to exit: CEO

29/12/2022 Argaam

Alsaif Gallery founders do not plan to exit: CEO

Logo of AlSaif Stores for Development & Investment Co. (Alsaif Gallery) 


AlSaif Stores for Development & Investment Co.’s (Alsaif Gallery) CEO Mohammed Alsaif said founding shareholders have no intention to sell their shares or exit in the short, medium or long terms.

 

He told Al Ekhbariya TV that the retailer’s Saudi Exchange (Tadawul) listing is an implementation of the highest governance standards. It is also an indication of family business sustainability for the second and third generations, especially as Alsaif Gallery bears the family name.

 

There are plans to open 28 branches in Gulf countries. This is besides expanding into Jordan and Egypt. 

 

Expansions will be executed through acquiring companies similar to Alsaif Gallery, the CEO pointed out.

 

Regarding the decline in the stock price over the first two days of trading, Alsaif stressed that the retailer made its Tadawul debut with the proper valuation. He noted that the retailer’s market value and annual profit should be factored in its evaluation alongside the stock price.

 

Alsaif Gallery’s debut coincided with decreased liquidity in Saudi and global markets, which was also attributed to high interest and inflation rates globally, not to mention the war in Ukraine, he added. 

 

The share price was determined via the book-building process that involved over 177 companies, all of which are supported by research firms and experts specialized in financial analysis. 

 

Alsaif Gallery is attention worthy, thanks to its sustainable growth, expansion and cash dividends. It performs well in terms of expansion, which does not require high capital. Moreover, operating in the retail sector renders all its sales in cash.

 

The retailer optimizes its branches to support online sales, through availing the in-store pickups and delivery from the nearest branch options, the CEO indicated.

 

There is an integration between retail and online sales, he added, noting that Alsaif Gallery online sales amounted to 10%. They are expected to increase with the branches’ significant role in achieving sales.

 

According to data compiled by Argaam, Alsaif Gallery started trading on Tadawul on Dec. 27, at a per share price of SAR 115.

 

The stock closed at SAR 92.30 on Dec. 28, a 20% decrease from its listing price.

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