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eXtra to seek approval for consumer finance unit IPO

Jamjoom Pharmaceuticals IPO Saudi Arabia Tadawul Reuters/Ahmed Yosri
eXtra will invite shareholders to a general assembly meeting to vote on the significant transaction upon obtaining regulatory approval

Saudi retailer United Electronics Company (eXtra) plans to launch an initial public offering (IPO) of its Shariah-compliant consumer finance business.

United Company for Financial Services (Tasheel), which provides non-banking financial services to its clients, is owned by eXtra’s subsidiary, United International Holding Company.

The IPO will be a “significant transaction” subject to the shareholders’ approval, the company said in a statement to the Saudi bourse on Sunday.

eXtra will invite shareholders to a general assembly meeting to vote on the transaction upon obtaining regulatory approval.

Reuters reported that HSBC had been appointed to arrange the public share sale in May, citing sources.

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 SAR396 million ($105.60 million) for selling a 30 percent stake offered to the public.

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