Nayifat Finance Company announces the IPO final offer price

The final offer price (the "Final Offer Price") for the Offering has been set at SAR 34 per Share, implying a market capitalization on admission of SAR 3,400 million (USD 907 million)

  

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 its book-building process and the pricing and final offer price for its Initial Public Offering (the “IPO” or the “Offering”) on the Saudi Exchange main market.

The final offer price (the “Final Offer Price”) for the Offering has been set at SAR 34 per Share, implying a market capitalization on admission of SAR 3,400 million (USD 907 million).

The book-building process generated an order book of SAR 162 billion, and was 136x oversubscribed.

Abdulmohsen Al Sowailem, Managing Director and Chief Executive Officer of NFC, said: “This latest milestone in our growth journey serves as testament to our unique value proposition in the Kingdom, as we continue to deliver unparalleled financial and operational results. I am delighted to witness the strong demand and positive outcome for NFC’s shares by institutional investors, and look forward to the exciting opportunities ahead, as we continue to embark on our next chapter of growth by welcoming a wider and more diverse institutional and retail shareholder base.”

The retail subscription period is scheduled to commence on Sunday, 7 November 2021 and ends on Monday, 8 November 2021.

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.

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 (USD 317 million)
  • The Offering is comprised of 35,000,000existing 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”); however, this may be reduced to thirty-one million, five hundred thousand (31,500,000) Offer Shares, representing 90% of the total Offer Shares depending on the level of demand by individual investors (as defined below). 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”)
  • 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
  • Individual Investors will be able to subscribe for shares in the retail offering between Sunday, 7th November 2021 and Monday, 8th November 2021 at the Final Offer Price of SAR 34 per Offer Share through the Receiving Agents

Key offering dates:

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/ 

-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.

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2021

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.


More From Press Releases