RIYADH: The Burgerizzr chairman said he is “confident” the market will set a fair level for the burger chain’s shares as it closes its initial public offering (IPO) pricing.
Mohammad Al-Ruwaigh said: “I am confident that the value the market will give to our company's shares will be fair value.”
His comments come as the firm’s share sale pricing ends today (Aug. 23) after opening on Aug. 15, 2021, according to its prospectus.
Last week, Burgerizzr’s IPO was oversubscribed by 500 percent on the first day, according to the financial advisor in charge of the share sale Emirates NBD Capital KSA.
It added the price range for the offering will be between SR150 ($40) and SR165 per share at the start of the book-building process.
“The final price for the shares will be determined on completion of the book-building process,” the company said in a statement on Tadawul.
Al-Ruwaigh, who co-founded the chain in 2009, plans to expand to 200 branches by 2025.
He said the business was able to maintain its identity and work on a successful and effective model in a sector of more than 30 billion riyals
Now we are the largest series of fresh burgers in Saudi Arabia with 79 branches, he added.
The chairman said the chain’s share in the Riyadh area is among the highest in its category according to our study and at the Kingdom level, the proportion of the Burgerizzr is estimated at 3.5 percent because we are not in most of the Kingdom’s cities
The fast-food sector in the Kingdom is growing at 5 percent to 6 percent, and it is excellent that the fast-food market is promising, said Ali Al-Ruwaigh.
He said there was still room for expansion in the Saudi market, with the food services sector in the Kingdom estimated at SR100 billion, according to market studies. Fast-food restaurants account for more than SR30 billion, with the burger market accounting for SR6 billion to SR7 billion.
However, the chairman added that the firm will look at opening branches outside the Kingdom next year. He said the business will need to find a partner who understands the market of the region, or country, to help spread its brand.
Ali Al-Ruwaigh said the chain has invested well in our online business to produce a popular app, including 40 percent to 45 percent of total sales through its online channels.
The company’s total debt in the first half of this year remains at around SR13 million, and in 2020 the debt-to-equity ratio was 28 percent, with total assets standing at 11 percent.
