Travel & Hospitality Saudi operator of Domino’s and Dunkin’ plans IPO By Andy Sambidge June 13, 2022 Creative Commons Alamar Foods to sell 10.6 million shares, 41.7 percent of issued share capital Half of stores located outside Saudi, compared to 20% a decade ago Alamar Foods, the Saudi-based operator of fast food giants Domino’s and Dunkin’, has announced plans for an initial public offering (IPO), further boosting the kingdom’s recent surge of share sales. Alamar said it will be listing its ordinary shares on the Saudi Exchange’s Main Market, following approval by the Capital Market Authority (CMA) for the company’s application to sell 10,633,392 shares, representing 41.7 percent of issued share capital. Current shareholders including funds managed by The Carlyle Group have exited and the final offer price will be determined after completing the book-building period. Saudi firms lead Mena IPO charge amid global gloom Alamar said over the past 30 years it has embedded Domino’s and Dunkin’ into local culture and generated strong demand. Today, almost half of Alamar-operated stores are located outside of Saudi Arabia, compared to approximately 20 percent of stores a decade ago. “Alamar’s journey began with the opening of the first Domino’s store in Riyadh, Saudi Arabia, and has since evolved to become the trusted developer and operator of two global household brands,” Ibrahim Abdulaziz AlJammaz, chairman of Alamar Foods, said. “This IPO is just the beginning of our next phase of growth which I am excited to oversee for the long-term. “The IPO represents an important step in the growth journey of Alamar, enabling the company to capitalise on the strong momentum in the regional quick service restaurant sector and create further headroom for innovation and deepen our presence in-market.” Filippo Sgattoni, group CEO, said: “Our vision for the future extends beyond the business, where we seek to make a meaningful impact in the markets where we operate by creating opportunities for local talent and supporting local communities. “We have ambitious development plans for the future that leverage our existing platforms to further grow the business and expand through best-in-class digital and distributional operational infrastructure, including the addition of complementary brands to our portfolio of brands and international expansion.” Alamar’s announcement comes as Saudi Arabia dominated listings activity in the first quarter of 2022 with six IPOs on Tadawul’s Main Market and seven IPOs on the Nomu-Parallel Market, raising $3.9 billion in proceeds. “Saudi Arabia is currently the dominant player, but with regionwide activity that is bucking the global trend, we anticipate continued IPO activity across the entire region as 2022 progresses,” Brad Watson, EY Mena strategy and transactions leader, said. Despite uncertainties affecting the global IPO outlook – including the ongoing Russia-Ukraine conflict – the Mena region saw a 400 percent year-on-year increase in the number of companies listing in Q1. EY said strong IPO pipelines in Saudi Arabia and the United Arab Emirates are expected to result in another record-setting year for MENA IPO markets this year. EY added that Saudi Arabia in particular is presenting investors with a great variety of opportunities across multiple industry sectors that bodes well for Saudi Arabia’s Vision 2030 for the development of a diverse non-oil economy. Alamar said it has appointed HSBC Saudi Arabia as financial advisor, bookrunner, lead manager and underwriter while Riyad Bank, Saudi National Bank (SNB) and AlRajhi Bank have been appointed as receiving entities for the individual investors tranche. Alamar has the exclusive right to develop and operate Domino’s in over 16 countries in the Menap region, and over 560 Dunkin’ stores across 11 countries. It recorded revenue of SR868.1 million in 2021, an increase of 21 percent compared to SR591 million in 2019.