Saudi hardware retailer Saco plans debut IPO
Riyadh, February 17, 2014
Saudi Company for Tools and Hardware (Saco), a pioneer in the hardware retail and wholesale business and the largest total-solution home improvement superstores in the kingdom, is set to launch its debut initial public offering (IPO) soon.
The company has appointed HSBC Saudi Arabia as the financial adviser, lead manager and underwriter for its planned IPO.
Established in 1985, Saco currently operates 21 retail outlets, including 3 Saco World superstores in 12 cities across the Kingdom. The company boasts of over 45,000 different products on display in stores ranging from 2,500 to 24,000 sq m.
The company plans to float 30 per cent of shares in its debut IPO, as part of its expansion strategy.
Commenting on the move, Saco chairman Khaled Al-Hamidi said: "We are proud to announce our shareholders’ decision to file for listing Saco on the Tadawul Stock Exchange. This is a strategic milestone in our continued development journey."
"We are aiming for an efficient and successful process in accordance with applicable regulations, and are excited to offer Saudi investors and citizens the opportunity to participate in and be part of the SACO success story," he noted.
Sameer Al-Hamidi, the CEO of Saco, said it is one of the most innovative companies in its field throughout the Kingdom, offering its customers a unique one-stop-shop experience with the widest products range at competitive prices.
He pointed out that as the exclusive dealer and partner in Saudi Arabia for numerous global brands, Saco offers quality merchandise to its customers from all over the world.
"Saco has achieved outstanding growth over the last years and has developed a significant and growing market share in the Saudi retail sector," he noted.
“This IPO will be a major step forward in our expansion strategy, and we are confident that HSBC Saudi Arabia, with its track-record and reputation as a leading investment company in the Kingdom and internationally, will deliver a successful and seamless IPO process for Saco,” stated Al Hamidi.
HSBC Saudi Arabia CEO Walid Khoury said the Saco issue would be an excellent addition to the Saudi financial markets.
"This is another testament to our unparalleled track-record in Saudi Arabia, with 20 completed IPOs and equity issues since 2003, based on our unique combination of a strong Saudi-based team supported by the global HSBC platform providing world-class sector expertise," he added.-TradeArabia News Service