BinDawood Prepares First Middle Eastern IPO Since COVID-19

BinDawood Holding is planning to offer an initial public offering (IPO) of its supermarket division by the end of July, in what would be the first Middle Eastern share sale since the COVID-19 pandemic, Bloomberg News reported.

The Saudi Arabia-based company hopes to take advantage of the surge in demand for its online delivery business due to the shutdown. Its stock would be listed on Tadawul, the Saudi Stock Exchange.

In February, sources said BinDawood was expected to go public by the end of the first quarter or the beginning of the second quarter of 2020. The deal has not been finalized and the terms and timing could still change, anonymous sources told the news service.

Founded in 1984, BinDawood operates 73 stores across Saudi Arabia with 10,000 employees.

The company’s retail revenue exceeded $1 billion in 2019. Additionally, it is planning to open 90 stores by the end of 2020.

Bloomberg reported that BinDawood is working with Goldman Sachs Group Inc., J.P. Morgan Chase & Co., GIB Capital and NCB Capital on the IPO. Moelis & Co. is serving as the company’s financial adviser.

If the IPO is successful, it would come on the heels of a February offering by Dr. Sulaiman Al Habib Medical Services Group Co., a hospital operator that raised 2.63 billion riyals ($701 million) in a deal that was 83 times oversubscribed, the news service reported.

In February, Reflexis Systems, a Massachusetts provider of workforce management, announced a partnership with BinDawood. Under the terms of the deal, BinDawood will implement three Reflexis systems across its stores, aiming to improve efficiency by enhancing management control and increasing visibility around tasks and reporting.

“We are excited to be working with such a well-respected retailer with more than 35 years in the industry,” said OP Choudhary, Reflexis’ managing director, at the time. “BinDawood Holding is a leading private retail brand in Saudi Arabia with clear strategic growth initiatives that we are excited to support with our intelligent store operations solutions.”