HSBC Saudi Arabia, in its capacity as the financial advisor, lead corporate bookrunner, lead underwriter and lead underwriter for the potential public offering of Nayifat Finance Company Nayifat intends to offer its shares for an initial public offering and to list its ordinary shares on the main market at Tadawul Saudi Arabia.
According to Arab Net, the offering includes the sale of 35% of the company’s shares. The company obtained the approval of the Saudi Tadawul to request the listing of its shares in the main market on April 5, 2021, and obtained the approval of the Capital Market Authority on its request to offer 35 million ordinary shares, representing 35% of the shares. The company's shares will be offered for public subscription on September 29, 2021.
HSBC Saudi Arabia stated, in a statement on Tadawul Saudi Arabia, today, Tuesday, that the final offer price will be determined for all subscribers after the end of the book-building period.
Al-Nayifat stated that the potential initial public offering will help strengthen and upgrade its internal operations, improve transparency and governance policies, in addition to benefiting from the company's core business in the field of retail finance to expand its portfolio of innovative financing solutions for existing and potential customers, including credit cards and facility financing solutions. SME and FinTech crowdfunding platform recently launched by Yolind.
The company's management believes that the potential listing will allow it to tap into the financial markets for future financing and benefit from its exposure to the non-bank finance sector and the macroeconomic environment in Saudi Arabia to enhance its reputation and brand.
She said that the entire offering shares will be allocated to the participating classes, and in the event that there is sufficient demand from individual subscribers, the IPO manager has the right to reduce the number of the offering shares allocated to the participating classes and allocate 10% of the offering shares to individual subscribers.
It is noteworthy that Nayifat Finance Company's portfolio includes more than 44,000 clients as of the first quarter of 2021, and Nayifat is the first non-bank financial institution to obtain a license from the Central Bank of Saudi Arabia to issue credit cards.
Al-Nayifat Finance Company was established in 2002 with a capital of 10 million riyals, and its current capital is one billion riyals, and its market share in the retail financing market is 18% as in the first quarter of 2021.
Al-Nayifat appointed HSBC Saudi Arabia as the financial advisor and manager of the institutional lead book and the lead underwriter in relation to the offering shares, and appointed Saudi Fransi Capital and GIB Capital as managers of the institutional book and the co-underwriters.
Together, the three companies are referred to as bookrunners, and the Saudi British Bank, SABB, Saudi National Bank, Riyad Bank and Al Rajhi Bank are designated as the recipients.
