Nayifat Finance Company announces completion of the offering period for Individual Investors

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, along with HSBC Saudi Arabia, as the financial advisor, today announces the successful completion of the retail offering period in relation to its Initial Public Offering (“IPO” or the “Offering”) on the Saudi Exchange main market.

The retail subscription period for Individual Investors Tranche, which commenced on 07 November to 08 November 2021, saw 1,021,759 investors subscribing to SAR 34 at a Final Offer Price of SAR 34 per share, generating an oversubscription of 20.95x with a total demand of c.SAR 2.5bn. The retail tranche comprised of 3,500,000 shares representing 10% of the total Offering.

The retail offering followed the successful completion of the institutional book-building process on 28 October 2021. The book-building process generated an order book of SAR 162 billion, and was 136x oversubscribed, as follows:

• Saudi Corporates (including private companies, listed companies, insurance companies and Capital Markets Institutions) with a coverage ratio of 92x

• Mutual Funds, Private Funds and DPMs with a coverage ratio of 37x

• Foreign investors (including GCC, QFIs and SWAP investors) with a coverage level of 5x

• Government Related Entities with a coverage ratio of 2x

Based on the results of the retail offering, the shares allocated to institutional investors will be scaled back to 31,500,000 shares, representing 90% of the total Offer Shares. The Company allocated a minimum of 3 shares to each retail subscriber included in the subscription request. The remaining shares have been allocated on a pro rata basis at around 0.6188%, based on the size of each subscriber’s request compared to the total remaining subscribed shares. Refunds of excess subscription amounts (if any) will be processed no later than 15 November 2021.

Offering Details:

• The Final Offer Price for the Offering has been set at SAR 34 per share, implying a market capitalization at listing of SAR 3,400 million
• The total Offering size is SAR 1,190 million
• The Offering is comprised of 35,000,000 existing shares to be sold by the current shareholders
• 100% of the Offer Shares have been provisionally allocated to institutional investors that participated in the book building process (“Institutional Investors”). This was reduced to thirty-one million, five hundred thousand (31,500,000) Offer Shares, representing 90% of the total Offer Shares. The final number of Offer Shares allocated to the Institutional Investors will be adjusted accordingly based on subscription from Individual Investors (as detailed below).

• Immediately following listing, the Company is expected to have a free float of 35% of the Shares
• 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”)

Key offering dates:

Transaction milestone and Dates

Refund of Excess Subscription Amounts (if any)  :  On or before 15 November 2021

Expected Start Date of Trading on the Saudi Exchange  :  Trading of the Company's Shares in the Saudi 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 and for the prospectus, please visit the Capital Market Authority website www.cma.org.sa, or NFC’s website: https://ipos.nayifat.com/ 

-Ends-

About NFC 

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^[1]. 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.

Contact details

HSBC Saudi Arabia 
Mohammed Fannouch
Faizan Baig
Assad Aldandash
NayifatIPO@hsbcsa.com 
·     Financial Advisor
·     Lead Bookrunner
·     Lead Manager
·     Lead Underwriter
Saudi Fransi Capital
Mohammed Almadhi
Sultan Aljasir
Khalid Alrashed
Nayifat.IPO@FransiCapital.com.sa
·     Joint Bookrunners
·     Co-underwriters
GIB Capital
Sami Arwadi
Faiz Jalal
Mansour Alammari
NayifatIPO@GIBCapital.com
Finsbury Glover Hering
Ahmed Jebur
Ahmed.Jebur@finsbury.com
Communications Advisor
(media inquiries)

© Press Release 2021