Carlyle to exit decade-old bet as Saudi Domino’s Pizza operator readies IPO

 Carlyle to exit decade-old bet as Saudi Domino’s Pizza operator readies IPO

Private equity firm Carlyle Group is set to offload its entire 41.7% stake in Saudi Arabia’s Alamar Foods Company, as the fast-food chain franchise prepares to list on the country’s stock market.

Alamar said it has secured approvals from the Saudi market regulator for an initial public offering. It will list on the Tadawul main market.

The IPO will allow Carlyle to sell the 10.6 million shares it owns in Alamar, which operates the Domino’s Pizza chain in Saudi Arabia and 10 other countries in the Middle East, North Africa and Pakistan.

The buyout giant’s planned exit comes more than a decade after it acquired a 42% stake in December 2011.

Apart from Domino’s, Alamar also has the rights to operate Dunkin Donuts outlets in Egypt and Morocco.

The IPO size or price are, however, not known yet and will be determined only after the book building issue closes. Individual subscription period will begin on July 20 and end the following day.

At present, Alamar operates more than 520 Domino’s outlets in 11 countries in the region and 44 Dunkin stores.

“Over the past 30 years, Alamar has demonstrated a long-standing track record in scaling businesses in the MENAP region, as it has effectively embedded global brands, Domino’s and Dunkin’, into local culture and generated strong demand,” the company said in its prospectus ahead of the IPO.

Alamar, which began operations in 1992, controls more than 43% of the Saudi Arabian pizza quick-service-restaurant market.

The company clocked revenue of SAR868.1 million in 2021, up from SAR591 million in 2019. Its EBITDA grew to SAR181 million in 2021 from SAR56 million in 2019, with margins improving to around 21% from 9%.

Alamar said that Saudi Arabia remains its largest market, though nearly half of the stores are located outside the country as of FY21.

Domino’s sales account for over 90% of Alamar’s revenue. Revenue increased at an annualised pace of 21% between 2019 and 2021, driven by higher sales in Saudi Arabia, the United Arab Emirates, and Egypt, the company said.

Aman Malik

error: Content is protected !!
The Capital Quest