Originally posted to the Reuters website, 12 October 2021
DUBAI, Oct 12 (Reuters) – 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.
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.
Falcom Holding, a Saudi firm which owns businesses in leasing and financing of vehicles, as well as brokerage services, investment advisory and asset management, holds a 73.86% stake in Nayifat.
IPO activity in Saudi Arabia has boomed in recent years, with several companies considering flotations.
A public share sale will allow Nayifat to capitalise “on its core consumer business while growing its portfolio of financing solutions such as credit cards, SME lending and its new FinTech crowd funding platform,” it added.
Nayifat’s intention to float did not include details of how much it plans to raise in the IPO or give a price range.
HSBC (HSBA.L) is acting as a financial adviser, lead book runner, lead manager and lead underwriter. Saudi Fransi Capital and GIB Capital are acting as joint bookrunners and co-underwriters.
Saudi Arabia’s Capital Markets Authority said in September it plans to expedite applications for companies, adding that 45 companies are waiting for approvals.
Link to the original post: https://www.reuters.com/business/finance/saudi-arabian-islamic-finance-firm-nayifat-plans-riyadh-float-2021-10-12/
