JEDDAH, 9 March 2004 — A small family business, popularly known to parents and students as Jarir, which converted into a public stock company recently, has been valued at SR424/share before the distribution of 2003 dividends, and assigned an “Add” recommendation by a study conducted by BMG Financial Advisors.
“Jarir is one of the few success stories where families have decided to go public. Our research department is becoming one of the most active in the Saudi market. We have done research for STC (Saudi Telecom) and next is the banking sector and we will be advising merchant families on conversion from family businesses to public companies,” Basil M. Al-Ghalayini, founder and CEO of BMG told Arab News yesterday.
The Jarir company was founded by the five sons of the late Abdul Rahman Al-Agil whose involvement in office and school supplies dates back to 1974 when he bought the first bookstore on Jarir Street in Riyadh. Gradually, the company expanded outside the capital, developing its current network of 13 bookstores in the Kingdom. In 2001, the company embarked on a regional expansion plan, and extended its operations to Qatar, Abu Dhabi, and most recently to Kuwait.
Earlier, in January 2000, Jarir Bookstore Co. was merged into JMC and three months later JMC took its first step toward widening share ownership by offering 40 percent of the company for sale in a private placement, leaving the five Al Agil brothers with a combined stake of 60 percent split equally between them. JMC listed its shares on the Saudi stock market in December last.
The company’s net income, which was SR94.7 million in 2002, and SR108.8 million last year, is expected to reach SR120.7 million this year.