(Bloomberg) -- Saudi Arabia-based perfume maker Al Majed for Oud Co. jumped by the maximum allowed in its Riyadh trading debut in a sign that demand for Middle Eastern listings remains robust.
The shares jumped to 122.2 riyals ($32.53), up 30% from the offer price of 94 riyals apiece. The initial public offering — where the company sold a 30% stake for $188 million — had been 156.5 times oversubscribed.
The Middle East has seen a flurry of share sale announcements over the past months, including from an exploration and production unit in Oman, two flour millers in Saudi Arabia and a food delivery firm in Dubai.
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And there are more in the pipeline. Arabian Oud, another Saudi perfume retailer, has hired banks for a potential offering, Bloomberg News reported in June. The Saudi wealth fund is planning to list Nupco — the kingdom’s largest medical procurement firm — in an IPO that could raise close to $1 billion, people familiar told Bloomberg News in July.
Also on the anvil are hypermarket chain LuLu Group International’s potential dual listing, which could be one of the year’s biggest regional IPOs, Abu Dhabi flag carrier Etihad Airways’ potential $1 billion share sale and a catering business in Abu Dhabi.
Founded in 1956, Al Majed for Oud has around 300 stores across Saudi Arabia and other Gulf countries, according to its website. The firm had hired BSF Capital, the investment banking arm of Banque Saudi Fransi, for the offering.
Oud perfume is a traditional Middle Eastern fragrance derived from the resin of the aquilaria tree native to Southeast Asia. Only a small percentage of the trees produce the resin, making it among the world’s rarest natural resources.
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