IPO will offer a maximum of 7.5 million shares Of these, 2.25 million will be allocated to public funds RIYADH: Saudi perfume manufacturer Al Majed for Oud Co. plans to launch an initial public offering on the Kingdom’s main stock market, releasing 30 percent of its issued share capital. A company statement revealed that the IPO will offer a maximum of 7.5 million shares. Of these, 2.25 million will be allocated to public funds. The shares, which will be listed and traded on the Main Market of the Saudi Exchange, include 20 percent — or 1.5 million shares — reserved for retail investors. This move will help the firm raise capital, enhance share valuation, and reduce capital while maintaining corporate identity and improving its reputation to attract and retain employees. This comes as the fragrance market is expanding rapidly due to rising consumer preferences, higher disposable incomes, tourism growth, and increased digital adoption. According to a market study by Euromonitor International, the Saudi fragrance market is projected to increase at an 11.3 percent compound annual growth rate from 2023 to 2027, reaching SR13.4 billion ($3.57 billion) by 2027. This will be driven by increasing disposable incomes, women’s empowerment, and tourism, including Hajj and Umrah. Majed Ali Othman Al-Majed, chairman of Al Majed for Oud, said: “For over six decades, Al Majed for Oud has grown to become a major player in the regional oud and perfume industry. Our dedication to tradition and quality has allowed us to earn the trust and loyalty of our customers.” He added: “As we prepare to list on the Saudi Exchange, we are poised to begin a new chapter that integrates our rich legacy with innovation and strategic expansion.” One of the leading players in the Kingdom’s oud and perfume market, the company is expanding within the Gulf Cooperation Council region and offers over 650 products across 132 brands through 286 stores as of Dec. 31, 2023. It reported a 30.4 percent revenue increase in 2023, with revenues rising from SR442.5 million in 2021 to SR767 million in 2023, reflecting a 31.7 percent CAGR. Its profit margin improved to 66.6 percent in 2023, up from 61.7 percent in 2021. “This listing is driven by a strategic ambition to diversify our investor base and strengthen our business operations to accelerate our growth and expansion strategy both locally and internationally,” said Waleed Al-Majed, managing director and CEO at Al Majed for Oud. The intention to list Al Majed for Oud Co. on the Saudi Exchange comes as the Kingdom’s IPO market continues to expand. A PwC report from May highlighted Tadawul’s leading role in GCC IPOs, with the primary market hosting three offerings that raised $667 million and the secondary market generating $57 million from six deals.