Nahdi Medical intends to proceed with IPO, list Shares on Tadawul

Nahdi Medical Company (“Nahdi”, “Company”, “we”, or “our”), the largest retail pharmacy chain and fast-growing omnihealth platform in Saudi Arabia (“KSA” or “Saudi Arabia”), announces its intention to proceed with an initial public offering (the “IPO” or the “Offering”) and listing of its ordinary shares (“Shares”) on the Main Market of the Saudi Exchange (“Tadawul”).

The Offering is expected to comprise a sale of existing Shares and result in a free float of 30 per cent.

Tadawul approved the Company’s application for the listing of the Shares on the Main Market on 19 December 2021 and the Capital Market Authority (“CMA”) approved the Company’s application for the initial public offering of 39,000,000 ordinary shares (representing 30% of the Company’s share capital) on 29 December 2021G.

The price at which all subscribers in the Offering will purchase Shares will be determined at the end of a book-building period.

• Nahdi is an innovative, purpose-driven Saudi Arabian retail pharmacy and healthcare company which exists to add beats to the lives of its Guests (“Customers”), every day. The Company has a history spanning more than 35 years of transforming the delivery of health and wellbeing products and services to millions of Guests.
• Nahdi is supported by two prominent shareholders, Al Nahdi Holding Company and SEDCO Holding.

• The Company is comprised of:

  • The market leading retail pharmacy chain in Saudi Arabia with 1,151 pharmacies[1].
  • A fast-growing primary healthcare services business with 2 polyclinics and 7 express clinics evolving into a holistic omnihealth platform.

• Nahdi’s pharmacies cater to the needs of over 100 million customers annually and operate across the largest brick & mortar network in Saudi Arabia serving 97% of the population across 144 cities and towns.

  • Products include medicine, beauty products, mother and baby care products, and a wide range of wellness and consumer products.
  • There is a dedicated department for private label and direct imports whose combined revenue has been growing from SAR 377 million in 2018 to SAR 890 million in 2020 representing a compound annual growth rate (“CAGR”) of 53%.
  • As of H1 FY21G, Nahdi held a 31% market share of total pharmacy revenue in KSA and approximately 10% share of the total number of pharmacies in KSA. This highlights Nahdi’s position as the market leader with throughput that is c.3x its share of the total number of pharmacies.
  • Complemented by a best-in-class digital infrastructure, Nahdi creates a seamless omnichannel experience between online and physical touchpoints for its Guests.

• Nahdi’s fully fledged healthcare services platform has been growing significantly and has been building on the same seamless omnichannel experience for its Guests.

  • Services include telemedicine, express clinics, polyclinics, home healthcare, and testing labs.
• Outstanding financial performance with 2020G revenue at SAR 8.6 billion, reflecting a 3-year CAGR of 8.4%, higher than the industry retailers’ average of 7.9%. 2020G EBITDA stood at SAR 1,459 million reflecting a 17% margin. 2020G EBITDA (pre-IFRS) was SAR 1,063 million with a 12.3% margin, up from 10.7% in 2018G.
• Highly qualified and well-trained staff led by a strong management team, guided by a dedicated Board with leadership experience in global market leading companies such as Microsoft and Amazon, and with support from two prominent shareholders, Al Nahdi Holding Company and SEDCO Holding.
• Sophisticated supply chain management underpinned by cutting edge technology with smart distribution centers across the Kingdom and an extensive delivery network.

• The strong Nahdi brand has been growing constantly year after year, as evidenced by its loyal customer base generating approximately 70% of revenues and by its multiple retail industry awards.

  • Nahdi’s Nielsen Store equity index[2] was 6.8 in July 2021, significantly higher than that of its peers.
  • Awards include Brand of the Year – National Companies Category (Global Brand Award 2019, 2020 and 2021; Most Admired Store Design (Retail ME Award 2020); Healthcare Smart E-Services Excellence Award (Excellence Award)
• Nahdi has a passion for people as demonstrated by its nurturing of talent (including women and the youth), its continuous learning platforms, and its vibrant culture – all of which have led Nahdi to be consistently ranked in the top 20 as a “Great Place to Work” in KSA, GCC and Asia since 2014.
• Committed to improving the wellbeing of communities through CSR programs, the Company has formulated three main pillars to address distinct Guest segments and to provide tailored services and solutions towards improving their overall health and wellbeing with the aim to add 36 million beats to communities by 2030.

Eng. Yasser Joharji, Chief Executive Officer of Nahdi, said: “Nahdi is a purpose-driven health and wellbeing company with a heart. For over 35 years Nahdi has been transforming the delivery of healthcare products and services to tens of millions of Guests, one beat at a time. Today, Nahdi is the largest pharmacy retail chain in Saudi Arabia operating more than 1,150 stores in 144 cities and towns across the Kingdom and a growing number in the UAE. Despite our market leadership, we go above and beyond retail pharmacy by putting our Guests at the center of all our activities and initiatives. We want our Guests to feel that there is one partner who is always thinking about bringing them the full health and wellness ecosystem to their fingertips and doorsteps. As such, Nahdi’s growing omnihealth platform is revolutionizing the provision of primary healthcare services to our Guests.

He also said “Our track record for Guest-centricity, continuous innovation, supply chain management, talent cultivation, and broad community engagement has also translated into consistently excellent financial performance over the years. This all gives me full confidence that Nahdi is living up to its vision of being the most loved & trusted health and wellbeing partner of our Guests.

Today, with the launch of our intention-to-float 30% of the Company’s shares to the public, it gives me immense pride to invite retail and institutional investors, who believe in Nahdi’s mission, to join us on our journey of redefining the future of primary healthcare for all our Guests, one beat at a time. he concluded.