Finance

Saudi finance firm UIHC’s IPO 132 times oversubscribed

November 12, 2024, 5:38 PM

UIHC is the parent company of Tasheel Finance, an Islamic consumer finance operator

UIHC receives $35bn orders
Final price SAR132 a share
Market cap of SAR3,300m

United International Holding Company (UIHC) has received orders worth SAR131 billion ($34.8 billion) for its upcoming initial public offering on the Tadawul, the company announced on Tuesday.

The Saudi Arabian financial services firm’s IPO was oversubscribed 132 times. The final price was set at SAR132 per share, implying a market capitalisation of SAR3,300 million at listing.

Its parent company, United Electronics Company (eXtra), is set to raise SAR990 million by selling a 30 percent stake in the IPO.

UIHC is the latest in a flurry of late-year flotations that have boosted the current year’s value in the region.

The subscription period for institutional investors is over, while the retail portion will open on November 19 for two days.

Kuwaiti asset management and investment banking centre Markaz said there were 30 IPOs across the GCC countries in the first nine months of 2024, raising a total of $5.2 billion – 24 percent less than the same period last year.

However, IPOs of UAE supermarket chain Lulu International and Oman's OQ Exploration and Production are likely to bring the total value closer to the total of $10.7 billion recorded in 2023.

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

“The Gulf IPO market remains buoyant. In a global context, the GCC remains one of the most active markets for IPOs,” Tarek Fadlallah, CEO of Nomura Asset Management Middle East in Dubai, told AGBI last month.

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.

Consumer electronics company 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 and operates in 28 cities.

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