Avalon Pharma to float 30% in IPO on Saudi exchange

Avalon Pharma

Saudi Arabia’s Middle East Pharmaceutical Industries Company (Avalon Pharma) will proceed with an initial public offering (IPO) on the Saudi Exchange, with the book-building period running from January 14 to 18.

The home-grown pharmaceutical maker will offer six million shares, or 30 percent of its issued share capital, with final pricing to be determined following the book-building period. 

“The market within the kingdom is changing rapidly and we are well placed to capture future growth across the region, as we have shown over the years through our ability to address market needs,” said Mohammed Maher AlGhannam, managing director and CEO of Avalon Pharma.

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Aldukheil Financial Group has been appointed financial adviser and bookrunner for the IPO while Alinma Investment is acting as lead manager.  

Riyadh-headquartered Avalon Pharma’s main activities include the development, manufacturing and marketing of consumer health and beauty brands as well as generic prescription medicines.

The company has a manufacturing capacity of over 5,000 sq m and a warehouse network across Saudi Arabia. It has three manufacturing and research and development facilities and four warehouses within the kingdom.

Avalon Pharma recently completed a major expansion by doubling its manufacturing capacity, which is expected to start production by the second quarter of 2024, the company said in its IPO prospectus.

Under its 2027 growth strategy, the pharma company plans to introduce new product ranges and manufacture different forms of complex and high-tech medications.

The total medicine and medical supplements sector in Saudi Arabia is anticipated to increase at an annual rate of five percent to reach SAR44 billion ($11.73 billion) by 2027, according to the prospectus.