About Fawaz Alhokair
In a May 2019 interview, Fawaz Alhokair Group CEO Omar Al Mohammedy discussed the company's IPO, stating that the group was "happy with the pricing" and that the transaction was "the largest Saudi IPO since 2014." He described the price range as "reasonable for both us as issuers and for investors" and noted that the IPO "garnered significant demand from a mix of investors locally, regionally and internationally." Al Mohammedy also commented on Saudi Arabia's Vision 2030 program, calling it "a tremendous opportunity" and pointing to what he described as a young, growing consumer base and an under-supplied organized retail market. He cited the launch of 15 cinemas across the group's existing assets as an example of how policy objectives related to entertainment directly benefit the business. When asked about regional geopolitical tensions, Al Mohammedy said the group manages its business "for the long-term" and expressed "big faith in the Saudi economy" and government planning, adding that the Saudi economy and consumer "did well throughout all of these tensions" historically.
Source: AI-verified profile updated from Fawaz Alhokair's recent appearances.
Browse all interviews →
Transcript (8 segments)
F
Fawaz Alhokair0:11
In 2014, we wanted to make sure that we go out with a price range that is reasonable for both us as issuers and for investors. The IPO garnered significant demand from a mix of investors locally, regionally, and internationally, and overall we're very happy with the outcome. I think if you have a look at the recent Saudi Aramco bond offering as well, it really just shows how there is a big appetite out there now around the world for assets in Saudi Arabia.
I
Interviewer0:42
Tell me, were you happy with the support that you received not just on the institutional side but on the retail side? And could you break that down for me? What did we actually see coming in?
F
Fawaz Alhokair0:51
The mix of investors is 57% on portfolio accounts with financial institutions, licensed financial institutions in the kingdom. We had 26% from government institutions, corporates, insurance businesses, and financial institutions directly, and roughly 17% from investors outside the region. For us, that's a well-balanced mix of investors, and it shows the broad level of interest in our story that our story received both regionally and globally.
I
Interviewer1:40
Tell me a bit about that story, because what we also know is that the government in Saudi Arabia has been investing heavily into new sectors, looking for new drivers of growth, and Vision 2030 is a really important part of that. How are you investing into that, and what opportunity does Vision 2030 present to you?
F
Fawaz Alhokair2:11
We have a young, growing, globally connected population with great aspirations. We have a market that is undersupplied from an organized retail perspective. We are at 0.4 in the kingdom in terms of organized retail formats, which is formats above 3,000 square meters, compared to 1.1 globally and up to close to 2 in some of the more developed markets like the US. But more importantly, one of the Vision policy objectives is to improve the quality of life for Saudi citizens and Saudi residents. So we'll have more cinemas and growth assets. For us, many of these policy objectives allow us to add concepts that in the past we could not add, whether it's across entertainment and cinemas, or across fine dining. We're excited that there is significant room for us to give the hungry Saudi consumer the product that they demand. Retail is really at the coalface of an economy in transition.
I
Interviewer3:42
I wanted to ask you about a couple of other issues as well. What we see now within the region is growing concerns about the US influence. We see these tensions between the US and Iran, for example. Does that perhaps nullify or mitigate some of the impact in the Saudi economy over the medium term?
F
Fawaz Alhokair4:13
We have big faith in the Saudi government's economic planning and in the savvy consumer. Our region has always had its fair share of geopolitical tension and geopolitical headlines, but the Saudi economy and the Saudi consumer did well throughout all of these tensions. You have the Iraq war and many other examples where the economy continued to grow and the consumer continued to grow. So we continue to invest for the medium term and long term, and we try to focus on what we can control.
I
Interviewer4:51
The stuff goes live on Mondays. That Kirk does, yes, absolutely. Okay, we'll be looking to see how it performs. Hi, I'm Johanna Versace and...
