Riyadh – Nayifat Finance Company (“Nayifat” or “NFC” or the “Company”), one of the leading nonbank financial institutions (NBFI) within the consumer financing space in Saudi Arabia, today announces the price range for its Initial Public Offering (the “IPO” or the “Offering”) on the Saudi Exchange main market and the commencement of the institutional book-building period. The approved red herring prospectus, which contains full details of the Offering, has also been published.
The price range for the Offering has been set between SAR 29 and SAR 34 per share (the “Price Range”).
On 29 September, the Capital Market Authority (“CMA”) approved the Company’s application for an initial public offering of 35,000,000 Shares (“Offer Shares”), representing 35% of NFC’s share capital, by way of sale of existing shares on a pro-rata basis by all shareholders of the Company. The final offer price of the Offer Shares will be determined at the end of the institutional book-building period.
- The Price Range has been set between SAR 29 and SAR 34 per share.
- The offering is comprised of 35 million existing shares to be sold by way of a secondary offering on a pro-rata basis by all existing shareholders.
- Immediately following listing, the Company is expected to have a free float of 35% of the entire issued share capital of the Company.
- The Company’s Shares will be listed on the Saudi Exchange main market following the completion of the offering and listing formalities with both the Capital Market Authority (the “CMA”) and the Saudi Exchange.
- The Offer Shares will be offered for subscription to retail and institutional investors, including institutional investors outside the United States in accordance with Regulations S (RegS) under the US Securities Act of 1933, as amended.
- With respect to the Offering, the Company appointed HSBC Saudi Arabia to act as Financial Advisor, Lead Bookrunner, Lead Underwriter and Lead Manager. The Company also appointed Saudi Fransi Capital and GIB Capital as Joint Bookrunners and Co-underwriters (HSBC Saudi Arabia, Saudi Fransi Capital and GIB Capital are referred to together as “Bookrunners”). The Saudi British Bank (SABB), Saudi National Bank (SNB), Riyad Bank and Al Rajhi Bank have been appointed as receiving agents (collectively, the “Receiving Agents”) for the individual investors tranche.
- During the institutional book-building period, all of the offer shares, which are comprised of 35 million shares, will be offered to institutional investors.
- Following completion of the institutional book-building period, the Offer Shares will also be offered to Saudi Arabian nationals, foreign residents in the Kingdom of Saudi Arabia and GCC nationals (“Individual Investors”). Initially, 100% of the Offer Shares will be provisionally allocated to the Institutional Investors; however, this may be reduced to a minimum of 31,500,000 Offer Shares (representing 90% of the total Offer Shares), as determined by the Bookrunners, provided that individual investors subscribe to the full retail tranche constituting 3.5 million shares or 10% of the total Offer Shares.
Key offering timeline:
Bidding and Book-Building Period
21 October 2021 – 28 October 2021
Subscription Period for Individual Investors
07 November 2021 – 08 November 2021
Announcement of Final Offer Shares Allotment
13 November 2021
Refund of Excess Subscription Amounts (if any)
15 November 2021
Expected Start Date of Trading on the Exchange
Trading of the Company's Shares in the Exchange is expected to commence after relevant regulatory requirements are satisfied. Trading will be announced through the Saudi Exchange website (www.saudiexchange.sa).
For more information on the prospectus, please visit the Capital Market Authority website www.cma.org.sa , and NFC’s website: https://ipos.nayifat.com/
NFC is a pioneer and one of the leading players in the NBFI space focused on serving the financing needs of individuals in the Kingdom. NFC is poised to capitalize on growth avenues supported by a comprehensive product suite, strong distribution network, robust risk management framework and a flagship brand. The Company has demonstrated a proven track record of growth and agility to navigate market conditions and adapt its strategies to the needs of the evolving consumer finance market in Saudi Arabia.
NFC was established in 2002 with a share capital of SAR 10 million and today operates with a share capital of SAR 1 billion. It was the first NBFI to be licensed by the Saudi Central Bank in 2014, and has been one of the leading players in the consumer finance market with a market share of 18% as of Q1 2021. It has a comprehensive portfolio comprising more than 44K customers.
The Company offers customers 100% Sharia compliant products and services including consumer finance, credit cards, SME financing and FinTech lending. NFC leverages on minimal competition on pricing and deep distribution network covering 23 cities, with 392 employees across 27 branches in the Kingdom.
© Press Release 2021