Private equity firm Carlyle Group will garner between $291 million and $325 million by selling its entire stake in Alamar Foods via the Saudi Arabian company’s initial public offering.
Alamar, which owns and manages the franchisee operations for Domino’s Pizza chain in Saudi Arabia and 10 other countries in the Middle East, North Africa and Pakistan, has set its IPO price between SAR103 ($27.46) and SAR115 ($30.66) per share. This implies a potential market capitalization of SAR2.6-2.9 billion.
Carlyle is offloading its 41.7% stake in the company and will sell 10.6 million shares. The PE firm had bought the stake from the Al Jammaz Group a decade ago for an undisclosed amount, according to an earlier statement issued by Carlyle.
Alamar has secured the necessary approvals for an IPO from the Saudi market regulator. It will list on the Tadawul main market. Following the listing, Alamar will have a free float of 41.7% of its share capital on the bourse.
Apart from Domino’s, Alamar also has the rights to operate Dunkin’ Donuts outlets in Egypt and Morocco. At present, Alamar operates more than 520 Domino’s outlets in 11 countries in the region and 44 Dunkin’ stores.
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, an increase of 21% CAGR compared with SAR591 million in 2019. Its EBITDA grew from SAR56 million in 2019 to SAR181 million in 2021, with margins improving to around 21% in 2021 from 9% in 2019.
Alamar said that Saudi Arabia remains the largest market. Nearly half of the stores are located outside of Saudi Arabia as of FY21.
Domino’s sales account for over 90% of Alamar’s revenue and increased at a CAGR of over 20% between 2019-21 driven by higher revenue from Saudi Arabia, United Arab Emirates, and Egypt, the company said.