#Saudi Perfume Maker Aims to Raise Up to $188 Million In IPO - Bloomberg

Saudi Perfume Maker Aims to Raise Up to $188 Million In IPO - Bloomberg

Saudi Arabia-based perfume maker Al Majed for Oud Company plans to raise up to $188 million in an initial public offering on the kingdom’s main stock exchange.

The company will sell a 30% stake, or 7.5 million shares, to investors at a price range of 90 riyals to 94 riyals ($24 to $25), according to a statement. The offer period and bookbuilding for institutional investors will run from Aug. 25 to Aug. 29. Retail investors will be able to submit offers on Sept. 15.

Al Majed for Oud hired BSF Capital, the investment banking arm of Banque Saudi Fransi, for the offering.

Saudi Arabia’s equity capital markets have been busy this year, with a number of IPOs having occurred and oil giant Saudi Aramco’s $12 billion secondary offering ranking as the biggest equity sale of the year globally.

Oud perfume is a traditional Middle Eastern fragrance derived from the resin of the aquilaria tree native to Southeast Asia. Given only a small percentage of the trees produce the resin, it’s one of the rarest natural resources in the world.

Arabian Oud, another Saudi maker of the perfume, may also eventually come to the Saudi market. The company hired Emirates NBD Capital and SNB Capital earlier this year for a potential share sale, Bloomberg has reported.

In other consumer markets, Saudi flour milling company Arabian Mills for Food Products Co. last week said it plans to offer more than 15 million shares on the local stock exchange. It hasn’t yet provided a price range.