ipo.alsaifgallery.comAlsaifGallery – AlsaifGallery Initial Public

Offering The leading home appliances and kitchenware retailer in the Kingdom of Saudi Arabia. The Company provides a seamless omnichannel retailing experience across 61 stores (as of Q3 2022) in Saudi Arabia and an online store shipping worldwide. Top line growth, High RoIC and Excellent Shareholder Returns A robust financial framework with a track record of value-added growth, underpinning shareholder distributions. A Seasoned executive team, supported by a strong board of directors The leadership team has a combined 90+ years of experience, overseen by experienced board of directors. The leading home appliances and kitchenware retailer in the Kingdom of Saudi Arabia. The Company provides a seamless omnichannel retailing experience across 61 stores (as of Q3 2022) in Saudi Arabia and an online store shipping worldwide. Top line growth, High RoIC and Excellent Shareholder Returns A robust financial framework with a track record of value-added growth, underpinning shareholder distributions. A Seasoned executive team, supported by a strong board of directors The leadership team has a combined 90+ years of experience, overseen by experienced board of directors. Message from the Leadership The retail sector in Saudi Arabia has continued to grow in recent years, and we are proud to play a key role in this development. COVID-19 in the Kingdom had a significant impact on accelerating consumer adoption of e-commerce and desire for value brands. At Al Saif Gallery, we remain committed to providing exclusive products with beautiful designs, anticipating and meeting market demands. We are well placed for future growth as consumers turn their focus towards small appliances for healthy cooking and the ongoing return to meeting and socializing.” Suliman Al-Saif, Chairman of Al Saif Gallery Our company’s vision is very clear, to be the leader and the brand of choice for customers, to serve them and to provide the finest home appliances and kitchenware. The unique nature of our relationships with suppliers, strong own-brand recognition, and ability to anticipate and respond to market needs serve as a strong foundation as we look to expand our network of physical stores and e-commerce platform across the region.” Muhammad Al-Saif, CEO of Al Saif Gallery Initial Public Offering ”Al Saif Stores for Development & Investment Company (Al Saif Gallery) is pleased to announce its intention to offer 30% of its share capital to the public through an initial public offering (IPO) and listing its shares on the Main Market of the Saudi Exchange, creating opportunities for investors to participate in the growing Saudi Arabia’s retail sector.” Offering Information 90% the Offering Shares will be offered to institutional investors and 10% of the Offering Shares will be allocated to the retail investors, as determined by the Financial Advisors. 10,500,000 Ordinary shares will be listed on the Saudi Exchange’s Main Market 30% of Al Saif Gallery’s issued share capital of 35,000,000 shares, offered by the current shareholders. 90% or 9,450 ,000 of the offering will be offered to institutional investors. 10% Or 1,050,000 of the offering will be offered to retail tranche. Intention to float November 15, 2022 Price range announcement and institutional boobkbuilding November 22, 2022 Institutional book building ends November 28, 2022 Retail Subscription starts December 5, 2022 Retail Subscription ends December 6, 2022 Allocation and refund of excess amounts December 14, 2022 FAQs Where does Al Saif Stores plan to list? The shares will be listed on the Main Market of the Saudi Exchange. How can I subscribe? Institutional Subscription: Saudi Fransi Capital (SFC) has been appointed as the lead Financial Advisors, Bookrunners, and Underwriters, can advise you on the process to invest. The institutional book-building commences on November 22nd, 2022 till November 25th, 2022. Further details will be disclosed in the prospectus. Retail Subscription: The retail subscription period will begin on the 5th of December 2022 till the 6 th of December 2022. Make an investment decision after reviewing the key documents provided and discussing the details with your financial advisor. Who is eligible to subscribe to the offering? Subscription to the offer is available to: (1) Participating Parties: This tranche comprises the parties entitled to participate in the book-building process as specified under the Book-Building Instructions issued by the Capital Market Authority (CMA); and (2) Retail Subscribers: This tranche comprises Saudi Arabian nationals, in addition to any non-Saudi natural person who is resident in the Kingdom and any GCC natural person, provided they have a bank account with one of the Receiving Agents and are entitled to open an investment account. Further details will be disclosed in the prospectus in due course When will the final offer price be announced? The final price of the shares will be set after the book building is complete. About Al Saif Stores SAR 825 million (USD 219 million revenues in 2021G SAR 216 million (USD 57.4 million) EBITDA in 2021G, the margin of 26.2%, Investment Highlights A leading player of branded products in a growing retail market Al Saif Gallery strives to make its stores a one-stop shop for all home items and appliances, and currently ranks number one in the Saudi kitchenware and serveware market, and number two in small home appliances market. The Company currently operates 61 (as of Q3 2022) branded stores across five regional areas in the Kingdom of Saudi Arabia supported by a growing e-commerce platform. The Company’s deep experience and awareness of market needs allows it to maintain customer traffic levels at its physical stores and via its online store. Efficient business model and effective supply chain management The Company’s rich history, as a leading retailer in the Kingdom, means it enjoys distinguished relationships with a large base of manufacturers and suppliers. For owned brands, the Company sources its product directly with manufacturers (network of 300+ manufacturers), which renders its supply chain efficient and it’s profitably margins higher Through its lean and efficient supply chain, the Company enjoys cost advantages with the manufacturers and suppliers, as the scale of operation gives the Company greater pricing power which in turn influences its margins positively. Al Saif Gallery enjoys a high degree of flexibility to change manufacturers to meet customer and market needs due to short-term contracts with those manufacturers. Seamless omnichannel retailing experience The Company has a high ability to reach customers through its extensive network of stores and its online store both website and mobile application. Al Saif Gallery provides a delivery service to all regions of the Kingdom and GCC countries and around the globe through its online store. The Company intends to continue developing its store and e-commerce platforms, in line with the evolving aspirations of customers. Broad product range, fan favorite and innovative products The Company’s dedicated, exclusive production lines with manufacturers means that certain exclusive product designs can only be imported by Al Saif Gallery. The Company is able to use its vast experience in the Saudi market to anticipate market needs and meet them for its customers. Compelling financial performance The Company has demonstrated solid top line growth, generating SAR 825m in revenue in 2021, representing a CAGR of 12% (2019-21). Al Saif Gallery’s EBITDA and net income for 2021 stood at SAR 216m and SAR 186m, representing a margin of 26.2% and 22.6% (respectively), significantly higher than other retail players. Coupled with its strong growth profile and high profitability margins, the Company enjoys healthy cash conversion, which enables to consistently payout dividends to its shareholders (average payout ratio of c. 70% from 2019 to 2021). Seasoned executive team, supported by...