Saudi financial services operator to list 30% on Tadawul

• Proceeds to parent eXtra
• UIHC home to Tasheel Finance
• Saudi leading IPO activity

United Electronics Company (eXtra) has announced plans to list a 30 percent stake of its financial unit, United International Holding Company (UIHC), on the main market of the Saudi Exchange (Tadawul).

UIHC is the parent company of Tasheel Finance, an Islamic consumer finance operator, and Procco Financial Services, which provides payment and loyalty services to the financial and retail industries. 

The entire amount raised will be distributed to eXtra, the company said.

eXtra, which has more than 50 consumer electronics and appliance stores across the kingdom, established Tasheel Finance in 2019 to provide non-banking financial services to its clients.

The Shariah-compliant consumer finance operator offers buy-now-pay-later installment plans and credit cards.

Tasheel’s third-quarter profits reached SAR59 million ($15.7 million), 11 percent higher than the same period last year. 

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HSBC Saudi Arabia and EFG Hermes KSA have been hired to arrange the offering.

HSBC was the financial advisor and lead manager of eXtra’s IPO in 2011, which raised SAR396 million for the 30 percent stake offered to the public.

Saudi Arabia has led IPO activity this year, largely due to Saudi Aramco’s $11.2 billion secondary offering in July.

Several companies have announced plans to list on the Tadawul, including perfumer Al Majed for Oud Co, Arabian Mills and Arabian Company for Agricultural and Industrial Investment (Entaj), a Riyadh-based poultry producer.