Subscription of “Al-Dawaa for Services ” assigning 2.55 million shares to private individuals

GIB Capital announced the intention of Al-Dawaa Health Services Company to offer 30% of its shares for the initial public offering and to list it on the main market on the Saudi Tadawul.

Al-Dawaa for Health Services obtained approval from the Saudi Tadawul Group to apply for a listing of its shares on the main market on September 8, 2021.

The company also obtained the approval of the Capital Market Authority on its request to offer 25.5 million common shares, equivalent to 30% of the company’s share capital of 850 million riyals distributed over 850 million shares.

The final offer price will be determined for all subscribers after the book creation period ends.

The shares of the company will be offered in public subscription to private and institutional investors on the basis that all shares will be offered in institutional subscription, with the possibility of allocating 10% of the total shares offered to individual subscribers.

The definitive assignment will take place at the end of the individual membership period, and if so in to which the individual subscribers subscribe the entire offering shares assigned to them, equal to 2,550 million shares, equal to 10% of the offering shares, the financial promoter has the right to reduce the shares assigned to entities to 22.95 million shares, equal to 90% of the total number of shares offered.

The company’s first pharmacy was established in 1993, after which the company has managed to become one of the largest retail pharmacy chains in the Kingdom today with a network of over 800 pharmacies, as well as wholesale channels and online.

The company achieved financial results in 2019 and 2020, with sales growth of 4.4% and 25.2% respectively and gross profit margins of 40.1% and 37.9% respectively.

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