Leading diversified mall, entertainment, fashion and F&B operator in Saudi Arabia
Clear strategy to continue profitable growth
Proven track record of operational performance and financial returns
"Since its establishment, the Company has built a reputation for being trustworthy and resilient while delivering long-term value for all stakeholders. The listing will provide an important strategic dimension to propel the Company’s growth strategy, enabling expansion into new geographies and building upon the success of its mall and entertainment offerings. Ultimately, our customers, investors, and the wider community alike will benefit from the resulting increase in quality offerings, particularly in currently underserved areas, as well as job creation in line with Vision 2030."
Abdullah Saleh Ali Al Othaim
Chairman
"Thanks to our diversified revenue streams, strong balance sheet, and agility and responsiveness as a business, Abdullah Al Othaim Investment Company weathered the pandemic. Now is the time to embrace the next phase of our journey through our intention to list, thereby further enhancing our governance and business operations, aligning our strategy with the Kingdom’s Vision 2030 aspirations. By listing, we seek to fuel our growth strategy, strengthening our already competitive offering and unlocking new opportunities."
Meshaal Bin Omairh
Chief Executive Officer
Initial Public
Offering
Abdullah Al Othaim Investment Co. is pleased to announce its intention to offer 30% of its share capital to the public through an initial public offering (IPO) and listing its shares on the Main Market of the Saudi Exchange, opening up opportunities for investors to participate in promising sectors such as tourism, leisure, and entertainment. These sectors are benefitting from Vision 2030’s target of increasing spending on cultural and entertainment activities, further advanced by the Kingdom’s rapid urbanization. In addition, the Kingdom continues to experience a strong post-pandemic upward growth trajectory for the retail, entertainment, and food and beverage sectors, contributing to the positive market dynamics.
The Capital Market Authority “CMA” approved the Company’s application for the Offering on 16 March 2022.
The IPO comprises an offer of 30 million ordinary shares “Offer Shares”, representing 30% of the Company’s issued share capital of 100 million shares by way of a sale of existing shares by the current shareholders.
The Offering Shares will be offered for subscription to retail and institutional investors. All of the Offering Shares will be offered to the institutional investors, with a clawback by the retail subscribers of up to 10%, as determined by the Financial Advisor.
Key Figures
10
Shopping malls strategically positioned across the Kingdom
+85%
Average occupancy rate between 2018-2021
+41 million
Average visitors per year between 2018 – 2021
38
Entertainment centers operating in six countries across the GCC and North Africa
37
Fashion retail stores in the Kingdom
29
Restaurants and coffee shops operating in the Kingdom
2 cinemas
With 5 lease agreements signed to operate cinemas in the pipeline
Investment Highlights
One of the largest shopping mall operators in the Kingdom and the largest operator in secondary cities
- 10 shopping malls strategically positioned across the Kingdom.
- An average occupancy rate of more than 85% between 2018-2021.
- More than 41 million average visitors per year between 2018 – 2021.
- 38 entertainment centers operating in six countries across the GCC and North Africa.
- 37 fashion retail stores in the Kingdom.
- 29 restaurants and coffee shops operating in the Kingdom.
- 2 cinemas with 5 lease agreements signed to operate cinemas in the pipeline.
A proven track record of excellence and resilience
- AOIC has been at the forefront of the Kingdom’s leisure culture and its growing experiential offerings, building a reputation of being trustworthy and resilient while delivering value for shareholders.
- The Company ensures sustainable operations and attractive profits for its shareholders through the ownership, development, and management of its malls and entertainment facilities, attracting top local and international brands.
- AOIC is a market leader in small and medium cities, where its positioning provides a high barrier to competition, with a targeted offering in major cities.
- AOIC is led by a highly experienced management team with an exemplary track record of success and depth of experience in mall development and management, along with the entertainment, trade, and real estate sectors, with an aggregate 150+ years of experience.
A growth strategy underpinned by supportive market conditions
- AOIC benefits from a strong market ecosystem resulting in favorable capital market conditions, in parallel with supportive market dynamics.
- The IPO will provide an important strategic dimension to propel the Company’s growth strategy.
- The Company intends to leverage supportive market conditions and government initiatives to fuel its strategy, expanding into new geographies and building upon the success of its mall and entertainment offerings, and exploring multiple consumer-driven avenues for growth.
- Its success is intertwined with the Vision 2030 story in line with the Quality of Life Program and the Kingdom’s emphasis on developing currently under-served areas, resulting in market growth for promising sectors such as tourism, leisure, and entertainment.
A strong financial position supporting solid growth
- AOIC has a proven track record of operational performance and financial returns, with strong revenue and earnings growth driving cash flow generation.
- The gross profit margins reached 51.0%, 53.3%, 50.7% and 46% in 2018, 2019, 2020 and 2021 respectively.
- The net profit margins reached 27.0%, 23.1%, 16.6% and 27.1% in 2018, 2019, 2020 and 2021 respectively.
- The Company has a scalable business model built to maximize the Company’s value, driving a diverse revenue profile and leveraging vast opportunities to further expand its offerings.
FAQs
Where does Abdullah Al Othaim Investment Co. plan to list?
The shares will be listed on the Main Market of the Saudi Exchange.
How can I subscribe?
Please contact one of the selling agents listed below or the Lead Bookrunner, GIB Capital, who can advise you on the process to invest. Further details will be disclosed in the prospectus in due course. We also recommend discussing your investment-related queries with your financial advisor.
Who is eligible to subscribe to the offering?
Subscription to the offer is available to: Participating Parties: This tranche comprises the parties entitled to participate in the book-building process as specified under the Book-Building Instructions. Individual Investors: This tranche comprises Saudi Arabian nationals, in addition to any non-Saudi natural person who is resident in the Kingdom and any GCC natural person, provided they have a bank account with one of the Receiving Entities and are entitled to open an investment account. Further details will be disclosed in the prospectus in due course.
When will the final offer price be announced?
The final price of the shares will be set after the book building is complete.
Useful Resources
Contacts
Financial Advisor and Lead Bookrunner
Communications & IR Advisor
Receiving Banks
