Middle East Pharmaceutical Industries Company, Avalon Pharma, announces its

Riyadh, Saudi Arabia – Middle East Pharmaceutical Industries Company (“Avalon Pharma” or the “Company”, or the “Issuer”),  one of the fastest growing home-grown pharmaceutical manufacturing companies in the Kingdom of Saudi Arabia (“KSA” or the “Kingdom”), today announces its intention to proceed with an initial public offering (“IPO” or the “Offering”) and the listing of its ordinary shares (“Shares”) on the Main Market of the Saudi Exchange.

On 6 December 2023, the Capital Market Authority (“CMA”) approved the Company’s application for the offering of 6,000,000 shares (the “Offer Shares”), representing 30% of the Company’s issued share capital, by way of a sale of existing shares by selling shareholders. The final offer price of the Offer Shares will be determined at the end of the book-building period, which will commence on Sunday 14 January 2024 until Thursday 18 January 2024.

Offering overview

• The Shares will be listed on the Saudi Exchange’s Main Market following the completion of the IPO and listing formalities with the CMA and the Saudi Exchange.

• The IPO of Avalon Pharma consists of an offer of 6,000,000 ordinary shares, representing 30% of the Company’s issued share capital of 20,000,000 shares.

• The Offer Shares will be offered for subscription to Participating Parties and Individual Investors. The number of Offer Shares to be initially allocated to Participating Parties is 6,000,000 Offer Shares representing 100% of the total Offer Shares. In the event that there is sufficient demand by Individual Investors, the number of shares initially allocated to Participating Parties will be reduced to 5,400,000 shares, representing 90% of the total Offer Shares.

• The final Offer Price will be determined at the end of the book-building process, and before the beginning of the subscription period for Individual Investors.

Company Overview

• Avalon Pharma is a Saudi joint-stock company that began operations in 1998. The Company’s main business activities are the development, manufacturing, and marketing of a wide range of unique consumer health and beauty brands as well as generic prescription medicines.

• Headquartered in Riyadh, Saudi Arabia, the Company exports its products to over 10 countries across the Middle East and North Africa and is one of the fastest growing consumer pharma companies in Saudi Arabia.

• With over 70 brands and 250 SKUs, Avalon Pharma offers a wide range of product categories, with special focus on dermatologicals, respiratory, neurology, and musculoskeletal.

• Avalon Pharma is the market leader in the market of dermatological products, medicines and skin care products, a fast-growing category in Saudi Arabia, with an 8.9% market share.

• Avalon Pharma is one of the top four manufacturers in Respiratory therapeutic category, with a 9.1% market share.

• The Company has a large manufacturing capacity of over 5,000 square metres as well as a warehouse network across Saudi Arabia, with three manufacturing and R&D facilities and four warehouses within the Kingdom.

• The Company recently completed a major expansion by doubling its manufacturing capacity which is expected to start production by the second quarter of 2024.

• Avalon Pharma has a clear 2027 growth strategy to introduce new product ranges to target additional sub-segments of the Company’s key therapeutic categories and manufacture different forms of complex and high-tech medications such as Oncology & General Injectables.

• The Company intends to expand its export market, a fast-growing channel for Avalon Pharma, including the introduction of new sub-distribution partnerships in key countries.

Commenting on the Intention to Float, Ahmed Tabbaa, Founder and Chairman of Avalon Pharma said:

“When I look back on the journey of our business over the last 25 years, I am delighted with the progress that we have made in becoming a leading consumer pharmaceutical company in the Kingdom of Saudi Arabia. We are a true success story within the Kingdom, having developed and expanded significantly during this time, venturing into new areas and products as we have adapted to, and anticipated, market demand. In listing on the Saudi Exchange, we are now able to capture future growth and provide an opportunity for a greater number of stakeholders to share in our success.”

Mohammed Maher AlGhannam, MD & CEO of Avalon Pharma, added:

“Since its foundation, the Company has built a reputation through the quality of its products and as one of the fastest growing pharmaceutical companies in Saudi Arabia. The market within the Kingdom is changing rapidly and we are well placed to capture future growth across the region as we…