IMES undertakes four main types of consultancy project:
“Independent assessment of a company’s future prospects to support the sale of shares”
Case study 1:
Al Akhawain, one of the largest companies in Saudi Arabia’s poultry sector, appointed SAMBA Financial Group as lead manager for its IPO. SAMBA in turn asked IMES to act as Market Consultant for the transaction. The task was to describe and analyse the Saudi poultry market, and most importantly define Al Akhawain’s current status and future prospects within it.
IMES researched the market through both analysis of published data and a series of interviews with active market participants (importers, local suppliers, retailers). Particular emphasis was placed on the market segmentation, since Al-Akhawain is primarily active in chilled chicken, not the bulk business of frozen chicken. Unusually, Al-Akhawain is vertically integrated and makes the majority of sales through its own stores. An additional layer of complexity was added by the need to take into account the likely impact of any possible outbreak of the H5N1 bird flu virus. All of these factors needed to be taken into account.
The study, covering all the necessary requirements, was completed within the required time frame and minor queries raised by the Capital Market Authority were addressed. IMES has since worked on several other IPO’s with SAMBA Financial Group.
Case study 2:
Jarir Group, consisting of Jarir Bookstores and Jarir Marketing, a Saudi market leader in bookstores and school and office supplies, wished to make a private placement of shares in order to help fund its expansion both in the Kingdom and outside. In support of this, IMES was commissioned to provide independent data on these sectors in Saudi Arabia, Egypt and the United Arab Emirates, and assess Jarir’s potential for success in each of these markets.
Field research was undertaken in all three countries. The task was complicated by the need to consider both the retail market and the wholesale market for the target products. Nevertheless, opportunities were identified in all three markets. This data and information was used as the basis for a successful private placement.