Morabaha Marina plans to raise up to $83.4m in IPO

Reuters/Faisal Al Nasser

Non-bank finance institution Morabaha Marina Financing Company plans to raise up to SAR312.9 million ($83.43 million) in an initial public offering (IPO) on the Saudi Exchange (Tadawul).

The Riyadh-headquartered company intends to sell a 30 percent stake, or 21.4 million shares, at a price range between SAR13 and SAR14.6 per share.

The final offer price will be determined at the end of the institutional book-building period, which is expected to end on May 21.

Subscriptions for individual investors will be open from May 28 to 29. 

The company did not disclose an expected trading date.

Net proceeds from the IPO will be used to strengthen the company’s capital base to support future growth.

On December 26 last year the Saudi market regulator approved the company’s application for an IPO. 

Established in 2012 Morabaha Marina Financing Company offers Shariah-compliant financial services to individuals and small and medium-sized enterprises through its network of 16 branches in 13 cities in the kingdom.

According to the EY Mena IPO Eye Q1 2023 report, the first quarter of this year saw 10 stock market listings with combined proceeds of $3.4 billion. This was a third fewer and down 14 percent in value compared to Q1 2022.

Saudi Arabia was the frontrunner in Mena activity, with six. Abu Dhabi’s Securities Exchange had the largest flotation of the quarter globally, with Adnoc Gas raising $2.5 billion.

Brad Watson, from EY, said: “Q1 proved Mena public offerings continue to go against global trends in these uncertain economic times, building on the momentum from last year. 

“There’s a healthy pipeline across the region for the rest of the year, with several initiatives to support private and government entities on their path to listing.”