Saudi Arabia’s Nayifat Finance Company said on Tuesday it plans an initial public offering (IPO) on the Riyadh stock exchange with a free float of 35% of its shares, according to a Reuters report.
Nayifat, a consumer-focused Islamic finance firm, said in a statement that it plans a sale of 35 million shares to institutional and retail investors. The sale of existing shares will be made by its current shareholders, it said.
HSBC is the financial advisor, lead bookrunner, lead manager and lead underwriter on Nayifat IPO. Tadawul approved the company’s application for the listing of the shares on the main market on April 5, while the Capital Market Authority (CMA) approved the Company’s application for the IPO on 29 September, according to details provided by Arab News.
Saud Al Dosari, chairman.
With a track record of providing loans to more than 270,000 customers, and a current active loan book of more than 44,000 borrowers, Nayifat is “focused on broadening and deepening its footprint in the Kingdom – catering to a greater number of customers and offering a more diverse range of credit products,” Saud Al Dosari, the company’s chairman, said on the company’s website.
Nayifat Finance Company is the latest in a string of IPOs in Saudi Arabia on the red-hot Tadawul. The Tadawul All Share Index (TASI) has generated a one year return as of today of 38.64%.
Just this week, Shares in Saudi Arabian renewable energy utility ACWA Power International jumped 30% on their market debut on after a $1.2 billion IPO. The company is also leaving the door open to sell green bonds to further fund ambitious renewable projects in Saudi Arabia, according to a report in renewablesnow.com.
ACWA’s IPO is the biggest offering in Riyadh since Saudi Aramco’s listing in 2019.
In May, Elm, the digital security firm owned by Saudi Arabia’s Public Investment Fund (PIF), said it was exploring a roughly $2 billion initial public offering (IPO).
In the finance space, Saudi Arabia’s stock market is reportedly in the final stretch in preparations for its IPO, according to a report in Bloomberg last week. Saudi Arabia’s stock exchange is close to announcing plans for the long-awaited IPO that could value it at as much as $4 billion, Bloomberg reported.
Arabian Internet and Communications Services Co., Tanmiah Food Co., Theeb Rent a Car Co., and Alkhorayef Water and Power Technologies Co., all listed on the main index this year.
