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Saudi Arabia’s United International Holding Company (UIHC) plans to sell a 30 per cent stake in an initial public offering (IPO) on the local bourse, joining a busy pipeline of new share sales in the GCC region.
UIHC, the parent of Tasheel Finance and Procco, is offering 7.5 million shares, representing 30 per cent of the company’s total issued share capital.
The group appointed HSBC Saudi Arabia and EFG Hermes’ local unit as joint global coordinators and bookrunners for the IPO.
“This offering marks a pivotal milestone in the company’s growth journey, empowering it to leverage Saudi Arabia’s evolving economic landscape and the rising demand for consumer finance products,” said Mohammed Galal, deputy chairman of UIHC.
The entire amount raised will be distributed to United Electronics Company (eXtra), the selling shareholder
Founded in 2019, Tasheel provides credit financing, among other digital services. Since its inception, it has served more than 200,000 customers, and in 2023, the company expanded its network to include over 50 retailers and service providers.
Tasheel posted $15.7m (SAR59m) in third-quarter profit, representing 11 per cent growth year-on-year. Procco supports Tasheel by offering back-office services such as data entry, file processing, and telemarketing.
Saudi Arabia has seen more than $15bn in share sales this year and hosted a range of IPOs, including a local hospital group, a human resource firm and a perfume maker. Saudi Arabia’s Fourth Milling Company raised $229m from an IPO on the Saudi Exchange (Tadawul) after pricing its shares at the top of its indicative range at SAR5.3.
Perfume maker Al Majed for Oud Company sold a 30 per cent stake for $188m in an IPO that was oversubscribed 156.5 times.
A wave of listing activity in the GCC region, which gathered steam in late 2021, continues unabated as governments seek to diversify their economies away from oil by selling stakes in state-owned enterprises.
Oman state-owned energy giant OQ raised $2.02bn from the IPO of its exploration and production business, marking the sultanate’s biggest listing on record. OQ Exploration and Production sold 2 billion shares, equivalent to 25 per cent of the company’s total issued share capital.
Meanwhile, Lulu Retail Holdings, which operates one of the Middle East’s largest hypermarket chains, plans to list a 25 per cent stake on the Abu Dhabi Securities Exchange. Lulu said it aims to maintain a total dividend payout ratio of 75 per cent of annual distributable profits after tax and to make the payout twice a year, subject to relevant parameters.