Saudi Arabia's BinDawood extends IPO timetable

The company's supplementary IPO prospectus shows 283m Saudi riyals worth of loans to related parties

Bin Dawood Holding has 73 stores of which 51 are hypermarkets and 22 are supermarkets. Courtesy of BinDawood Holding

Saudi Arabia's grocery retailer BinDawood Holding Company, the kingdom's third-largest grocery retailer, released a supplementary prospectus for its initial public offering that extends the timeline for potential subscribers and divulges 283 million Saudi riyals ($75.47m) worth of related-party loans.

The book building period for institutional investors resumed last Thursday and will continue until October 5, the company said in a statement on its website.

The subscription period for retail investors is scheduled to run from October 8 to 12, with the final offer price to be announced for both institutions and retail investors on October 6.

The company did not say when it expects its shares to start trading on the Tadawul stock exchange, the biggest Arab bourse by market capitalisation.

The company delayed the retail part of its IPO last month, citing further disclosure requirements. The subscription period for retail investors was originally scheduled to begin on September 27.

BinDawood disclosed that between July 2 and September 20 this year it provided a related entity, Amwaj Real Estate Company, a loan of 176.8m. It also provided an advance of 106.6m riyals to another related company Al Qimma Hotels, according to the supplementary prospectus.

These funds, the company said, were accounted for as “due from related parties” and “all amounts were repaid” to the company on September 21 and 22 this year.

BinDawood will float 20 per cent of the company through the sale of existing shares. At the top of the 84 to 96 riyals per share range, the company may raise 2.19 billion riyals. The price range values the firm at between 9.6bn to 11bn riyals.

All of the shares offered through the IPO will be provisionally allocated to institutional investors, but this may later be reduced to 90 per cent, depending on demand by individual investors, the retailer said last month. Proceeds from the IPO will be used to pay off existing shareholders.

Goldman Sachs and JP Morgan are joint financial advisers on the deal.

BinDawood Holding has 73 stores, out of which 51 are hypermarkets and 22 are supermarkets. It operates mass, mid-market supermarket chain BinDawood and high-end grocery brand Danube.

Significant shareholders in the company include the BinDawood family and Bahrain-based Investcorp, which acquired a stake in 2015.