© Reuters.
RIYADH – Avalon Pharma has announced its intention to launch an initial public offering (IPO) on the Saudi Stock Exchange (Tadawul), signaling a continuation of the recent IPO enthusiasm in the region. The pharmaceutical company, a major player in Saudi Arabia's healthcare sector, plans to offer up to 6 million shares to the public from January 14 to 18. The offer is accompanied by a note that the allocations for large investors may be reduced depending on the interest of individual investors.
Founded in 1998, Avalon Pharma has made significant strides in Saudi Arabia's highly competitive pharmaceutical industry. The company has developed a strong portfolio of consumer healthcare brands and generic prescription medicines and its influence extends beyond Saudi Arabia's borders into the broader Middle East and North Africa (MENA) region through exports.
The decision to go public follows a wave of successful IPOs on Tadawul, which included prominent IPOs such as MBC Group, which raised $222 million, and Ades Holding, which raised $1.2 billion marked the largest IPO. This trend reflects the broader growth in IPO activity in the MENA region, which saw a 44% increase in the second quarter of 2023, according to Imarc Group.
In addition, the pharmaceutical sector in Saudi Arabia is on a growth path. Forecasts suggest the market could reach $10.6 billion by 2028.
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