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The information furnished on the following web pages is not to be furnished or made available to any person outside the Kingdom of Saudi Arabia or to any person to whom it is unlawful to furnish or make available such information.

The information on the following web pages is intended solely to provide information on the initial public offering and listing of Almunajem Foods (the “Company”) and does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction. The information on the following web pages does not constitute or form part of any offer for sale or subscription of or solicitation of any offer to buy or subscribe for any securities in any jurisdiction other than the Kingdom of Saudi Arabia.

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This section of our website is designed to provide you with all the information related to the IPO of Almunajem Foods. We aim to ensure that everyone who is interested has the opportunity to find information on the company and the IPO process.

What is Almunajem Foods?

Almunajem Foods is amongst the largest Saudi food companies. It imports, markets, distributes and produces a wide variety of frozen, chilled and dry foodstuff items (including brands such as Doux, Dari and Supreme). Founded in 1950, it provides a wide variety of high-quality, nutritious food to millions of kitchens in Saudi Arabia by operating the largest temperature-controlled cold stores of frozen and chilled food in KSA.

The Company operates 14 branches, 12 of which are equipped with a temperature-controlled warehouse, importing over 250,000 MT of product annually which serves more than 18,000 customer outlets including retailers, wholesale distributors and food services companies.

It also successfully established its own meat factory in Jeddah and markets its own array of food brands.

AlMunajem Foods Logo 2021

The Big Numbers

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Chairman Letter

Saleh Bin Abdullah Ali Almunajem
Chairman of the Board

As one of the largest food companies in the Kingdom of Saudi Arabia, Almunajem Foods has played a pivotal role in the development story of our nation over the past 70 years by supporting the Kingdom’s food security. Since the company’s establishment in 1950, we have built extensive knowledge, experience and capabilities in the food industry, whilst fostering deep and meaningful relationships with our customers and suppliers globally.

Over the past few decades, our stakeholders, both external and internal, have observed the company’s tremendous transformation from a small Riyadh-based business to a household name that is trusted and valued by millions across the country. Today, with your trust and support, Almunajem Foods is a robust, technology-backed enterprise that attracts some of the top talent in the market and provides high-quality, nutritious food to millions of kitchens by leveraging its broad supplier network and logistical infrastructure.

Our intention to proceed with an initial public offering (IPO) on the Main Market of the Saudi Exchange is another significant step forward in our transformational story. A step that would not have been possible without our employees’ commitment, our unique business model and, most importantly, your trust.

The listing of Almunajem Foods is driven by our desire to further elevate the company by institutionalizing our operations from a governance and continuity perspective, and to share our story and success with our partners.

As we look to the future, the listing of Almunajem Foods will create a more robust platform to support the company’s long-term success and ambition.  As we embark on this exciting step, our entire team remains committed to our long-term strategy. We will continue to put the customer first, focus on product diversification and distribution channel enhancement, increasing our market share, strengthening our brand identity, and further developing our human and logistical capabilities. These priorities will ensure our long-term success and ability to deliver value to our shareholders.

Investment Highlights

Almunajem Foods mission is to deliver quality food products from around the world in a reliable, efficient and customer centric manner that adds value to all stakeholders.

1. Almunajem Foods is among the largest Saudi private food companies. It imports, markets, distributes and produces a wide variety of frozen, chilled and dry foodstuff items.
  • The Company has:
    • 18,000+ customer outlets including retail, food services, and wholesale channels
    • 700+ SKUs across 5 main product categories: 1) red and white meat; 2) frozen fruits and vegetables; 3) dairy products; 4) olives and oils and 5) others including rice, sauces, condiments, etc.
    • 14 branches, 12 are temperature-controlled cold stores and 1 meat processing facility
    • 55,000 MT of storage capacity
    • Imports over 250,000 MT of imported products annually from France, Spain, Norway, New Zealand, India, Brazil and others
    • 1,000+ specialized vehicles fitted with multi-purpose temperature storing capabilities
    • 1,800+ employees of which over 700 are dedicated to sales and marketing
2. Almunajem Foods provides a wide variety of high-quality, nutritious food to millions of kitchens across Saudi Arabia.
  • Maintains strong relationships with 60+ international and local suppliers; majority of which are internationally renowned with established global market presences
  • It has up to 50 years of relationships with product names such as Doux, Supreme, President
  • Complementing its import and distribution, Almunajem Foods produces various minced meat and FPP products through its meat processing facility in Jeddah. AMF is currently working towards expanding the portfolio of meat products produced by the facility.
3. Almunajem Foods was founded on 70 years’ experience providing quality food that is trusted by retail, wholesale and foodservice industries.
  • It established itself in 1950, opening its first temperature-controlled warehouse in Riyadh in 1962 with 200MT storage capacity. It has since grown its cumulative storage capacity over 270x to 55,000 MT at a time
  • It has a proven track record of growth driven by its ‘customer-centric’ approach, deep knowledge and expertise of the KSA market
  • It holds the number 1, 2 or 3 position across all main product categories delivered to retail consumers
4. Almunajem Foods diverse portfolio of 700 SKUs from trusted household brands such as Doux, Dari and President, has enabled it to grow through various market cycles and become some of the top selling products to retail chains, within its core categories
  • It has a well-diversified set of customers and suppliers, with its top 10 key customers sales contribution amounting to 24% of all sales
  • The top three sales categories are: red and white meat, frozen fruits & vegetables and dairy products
  • The company's' sales and supplier base have grown significantly and diversified greatly over the past 10 years
  • In recent years, Almunajem Foods launched its own brand; Dari, which offers a wide range of frozen poultry, FPP, fruits and vegetables and dairy products and others, and forms a key component of the Company’s growth strategy
5. Almunajem Foods operates one the largest set of state-of-the-art temperature-controlled cold stores in KSA. It is operationally agile and maintains strong logistical capabilities, backed by technology, data and tools to move products safely and efficiently.
  • Almunajem Foods has 14 branches strategically located across 12 regions in Saudi Arabia, in addition to a meat processing facility
  • 12 of the 14 branches are equipped with a cold store featuring advanced multi-temperature cooling and automated racking technologies which optimize inventory management and forms the foundations for the company's robust supply chain capabilities
  • Almunajem Foods uses Oracle inventory management system with real-time tracking
  • There are 18,000+ customers operating in the wholesale, retail and foodservice sectors, that get served by over 1,000+ vehicles, most of which are fitted with multi-purpose temperature storing capabilities
  • Quality control and food safety are at the heart of the Company’s operations – at every step of the food journey, from the product’s place of origin to customer outlets, the Company applies and adheres to the highest and most rigorous standards of quality control and food safety
6. The shareholders and senior management will continue to lead and manage the business they have built. They constantly ensure trust, integrity and quality to doing business.
  • The management team bring substantial experience and deep understanding of the sector, consumer behavior and consumption trends. You can read the management’s biography and details on corporate governance in the Prospectus. Click here for access.
  • It has a robust corporate governance framework in place, with two independent board members, and an audit, nomination and remuneration committee.
7. Strong, long-term market fundamentals in place with local food consumption expected to outstrip demand, led by Government-backed initiatives which continues to underpin growth
  • Long-term consumer spending and expenditure on F&B is expected to continue to grow at 4.6% CAGR until 2024G, driven by favorable demographic reforms, population growth and tourism
  • Government initiatives are creating a shift in the quality of life. More jobs, higher disposable income, growing consumer spending. As a result, F&B sales have grown by 6.4% between 2013 – 2021 to reach SAR 221 billion from SAR 135 billion.
  • Further growth is expected, with over 1,300 new restaurants and 1,200 new cafes due to open by 2025, all of which will need food delivered to them.
8. Enjoys robust financials through various market cycles. For the full year 2020, our sales surpassed a record SAR 2.5 billion, our EBITDA doubled, and we made a net profit of SAR 230 million. This reinforces our proven track record of maintaining liquidity and generating favourable returns.
  • Revenue averaged SAR 2,500 million during the last 4 years, highlighting the company’s ability to continuously shift, optimize and reinvent in strong or challenging market conditions
  • FY 2020 was a very strong year for the company
    • Revenue topped SAR 2.5 billion, 4.9% higher than FY 2019, largely attributed to a surge in average retail consumer spending and helped to off-set the drop in revenue from the pandemic affected foodservice channel
    • EBITDA reached SAR 279 million, 79% higher than 2019; and a three-year CAGR of 21.3%
    • Net profit was SAR 230 million, over 111% vs 2019; and a three-year CAGR of 24%
    • Cashflow generation at 74%
    • Healthy debt profile of 0.6x net debt/EBITDA to support future growth
  • Company paid a total dividend of SAR 158 million for FY 2020
  • H1 2021 more challenging, coming off a very strong, artificially higher year in 2020
    • Revenue at SAR 1,243m, marginally lower than H1 2020 at SAR 1,289m, mainly due to the decline of selling prices of some products as a result of increasing product promotions.
  • EBITDA and net profit declined on the back of easing of wider market trends contributing to the one-off increase during 2020.

Expected IPO Timeline

2021
Intention to Float and Prospectus
11
NOV
Price Range & Start of Entities Book Building
15
NOV
Close of Entities Book Building
21
NOV
Price Announcement and Provisional Allocation
25
NOV
Final date for submitting the subscription forms
30
NOV
Start of Individual Investors Subscription period
05
DEC
Close of Individual Investors Subscription period
06
DEC
Final allotment of share and notification of excess subscription monies (if any)
11
DEC
Refund of excess subscription monies (if any)
13
DEC
1st Day of Trading
* The shares trading commencement is expected to start after completion of all relevant legal requirements and procedures
20
DEC

Key Documents

How to Subscribe

STEP

01

Have an active current account

Ensure you have an active current account with one of the participating banks

STEP

02

Get more information about the company

Visit this page to get more information about the company and its public offering through the ITF and Prospectus.

STEP

03

Discuss details with your financial advisor

Make an investment decision after looking at the Prospectus and discussing the details with your financial advisor.

STEP

04

Subscribe to the offering

Subscribe to the offering priced at the top of the range, by visiting one of the receiving banks or applying online or via their digital application

STEP

05

Allocation of shares

Once shares are allocated, you may or may not receive full allocation for your order. Any excess will be refunded to you.

STEP

06

Monitoring Share Prices

The company will list in Tadawul and changes in share price can be monitored on the exchange.

FAQs on Subscription

1. Where is Almunajem Foods planning to list?
  • The shares will be listed on the Saudi Stock Exchange (Saudi Exchange).
2. Who is eligible to subscribe to the Offering?
  • Subscription to the Offer Shares is restricted to the following two groups of investors: (1) Participating Parties (any investor who is approved by the CMA) and (2) Individual Investors (Saudi Arabian nationals, GCC nationals and foreign residents in Saudi Arabia, with an active bank account with one of the participating banks), are eligible to subscribe to the Offering.
3. When will the Offering’s final price be announced for Individual Investors?
  • The Offering’s final price will be set after the book-building is complete.
4. Will there be any restrictions for selling my shares following the listing?
  • There will be no implementation of a lock-up period or restrictions on the sale of shares following the listing.

Receiving Banks

If you are interested to invest in Almunajem Foods, please contact the bank listed below which is collaborating with the Company in order to help investors and shareholders.

The Saudi British Bank (SABB) 

Prince Abdulaziz Ibn Musaid Ibn Jalawi St, Al Murabba
P.O.Box: 9084
Riyadh 11413
Kingdom of Saudi Arabia
Tel: +966 (11) 440 8440
Fax: +966 (11) 276 3414
Website: www.sabb.com
E-mail Address: [email protected]

Saudi National Bank

King Fahd Rd. – Al Aqiq – King Abdullah Financial Center
P.O.Box: 3208 – Unit No. 78
Riyadh 13519 – 6676
Kingdom of Saudi Arabia
Tel: +966 (92) 000 1000
Fax: +966 (12) 343 7426
Website: www.alahli.com
E-mail Address: [email protected] 

Al Rajhi Bank

King Fahd Rd. – Al Muruj – Al Rajhi Bank Tower
Riyadh 11411
Kingdom of Saudi Arabia
Tel: +966 (11) 828 2515
Fax: +966 (11) 279 8190
Website: www.alrajhibank.com.sa
E-mail Address: [email protected]

Contact

Brunswick Group