Investment

Saudi Arabia supermarket chain plans IPO next year

Tadawul/Bloomberg

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Share sales in Saudi Arabia are picking up after a five-year slump.

Thursday 20, June 2019

(Bloomberg) --Saudi Arabian retailer BinDawood Group is planning an initial public offering (IPO) of its supermarket business as early as next year.

The group has started preliminary work to list the holding company that manages its supermarkets and hypermarkets.

BinDawood may list the shares on Tadawul and an IPO would allow Bahrain’s Investcorp Bank to exit its minority stake in the firm, however, the company hasn’t hired financial advisers and may decide not to proceed with a deal.

The Kingdom’s bourse is drawing attention from global emerging-market investors after it was added to benchmarks compiled by MSCI and FTSE Russell.

Saudi retailer Fawaz Alhokair Group raised about SAR 2.47 billion ($659 million) last month from the IPO of its malls unit.

If BinDawood proceeds with an offering, it would be the third Saudi investment Investcorp has exited via an IPO in five years, the lender also listed L’Azurde for jewellery in 2016 and gym operator Leejam Sports last year.

BinDawood’s supermarket business was valued at around $2 billion when it tried to sell a stake in 2015. The company plans to have about 90 stores across Saudi Arabia by 2020.

 

TAGS : BinDawood Group, IPO, Tadawul, Fawaz Alhokair Group, MSCI, FTSE Russell, Investcorp Bank , Leejam Sports

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