Arabian Oud Prepares for Stock Market Debut with Bank Appointments

Saudi perfume giant Arabian Oud is gearing up for an initial public offering (IPO) after selecting Emirates NBD Capital and SNB Capital to manage the share sale, according to Bloomberg. Details regarding the IPO timing and valuation are still being finalized, with sources preferring anonymity.

Founded in 1982, Arabian Oud boasts over 1200 branches and positions itself as the leading manufacturer and retailer of fragrances in the region. Their specialization lies in incense, oriental perfumes, and traditional oil perfumes. This news comes amidst a flourishing IPO scene in Saudi Arabia, which has witnessed nine listings in the first quarter of 2024 alone. Three of these debuted on the main market, while the remaining six found a home on the Nomu Parallel Market, a dedicated platform for smaller-sized companies. Notably, the recent listings represent a diverse range of sectors, including healthcare, food and beverage, and media and entertainment.

Analysts believe that Arabian Oud's IPO could further bolster the Saudi stock market's momentum. The kingdom has been actively promoting itself as a financial hub, and a successful listing by a prominent local brand like Arabian Oud could incentivize other businesses to consider the IPO route. This aligns with the Saudi Vision 2030, a strategic framework aimed at diversifying the nation's economy and reducing dependence on oil revenue.

Arabian Oud's decision to go public reflects the growing popularity of luxury goods within the region. With a burgeoning middle class and a rising disposable income, the demand for premium fragrances and beauty products is expected to continue its upward trajectory. The company's extensive network of stores across Saudi Arabia positions it well to capitalize on this trend.

Furthermore, Arabian Oud's heritage and focus on traditional fragrances resonate deeply with the local market. The brand's ability to blend this cultural significance with contemporary sensibilities has been instrumental in its success. The IPO could provide Arabian Oud with the resources to expand its footprint not only within Saudi Arabia but also across the Middle East and potentially beyond.

The beauty sector in the MENA region, which includes the Middle East and North Africa, is anticipated to witness significant growth in the coming years. A report by Grand View Research predicts that the market will reach a value of USD 38. 8 billion by 2025. Arabian Oud's IPO could position the company as a major player within this rapidly growing market.

The specifics of the IPO, including the number of shares to be offered and the target price range, are yet to be disclosed. However, the appointment of banks signals Arabian Oud's intent to move forward with the listing process. This move is likely to be closely monitored by investors and industry experts alike, with many anticipating a successful debut for the fragrance giant.

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