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Saudi’s eXtra plans IPO of consumer finance unit

United Electronics has appointed HSBC to arrange the public share sale

Saudi retailer United Electronics Company is planning an initial public offering of its Islamic consumer finance business, Tasheel Finance, two sources familiar with the matter told Reuters.

United Electronics, known as eXtra, has appointed HSBC to arrange the public share sale, said the sources, who declined to be named as the matter is not public.

United Electronics did not respond to a request for comment. HSBC declined to comment.

Tasheel provides Shariah-compliant consumer finance, buy-now pay-later installment plans and credit cards, according to information on its website. It obtained a license to sell credit cards from the Capital Market Authority in 2021.

HSBC was the financial advisor and lead manager of eXtra’s IPO in 2011, which raised 396 million riyals ($105.60 million) for the sale of a 30 percent stake offered to the public.

The Gulf has seen a flurry of initial public offerings this year, with about $3.5 billion raised in the first quarter, according to Refinitiv, despite a slump in deals globally.

The figures from the Middle East were boosted by the IPO of Adnoc Gas, the world’s largest during that period.