The offering of “United International Holding Co.” was fully covered on Monday within the first few minutes of opening subscription for institutions, according to Bloomberg.
This reflects a strong appetite for listings in the Middle East.
Key Figures
The Saudi financial services company received orders for all shares in its initial public offering (IPO), which amounted to SAR USD 264 million.
The subscription was covered within a price range of SAR 120 -132 per share.
This put the offering size at between SAR 900-990 million.
The company’s market value at listing on the main market (TASI) will range from SAR 3-3.3 billion.
Retail investors will subscribe on November 19 and 20.
So what
The firm’s parent “eXtra” is selling 7.5 million shares, equivalent to a 30% stake in “United International.”
The latter is one of the largest providers of Sharia-compliant consumer finance services in the Kingdom, operating in 28 cities.
This is through two of its units “Tasheel Finance” and “Procco Financial Services.”
Some context
The Saudi stock market has attracted share sales worth over USD 15 billion since the beginning of 2024.
Most of these were due to the massive secondary offering by oil giant “Aramco” in July.
The market also included a series of listings that raised more than USD 3 billion.
Like some of its Gulf counterparts, the Kingdom is seeking to diversify its market aside from usual suspects like major banks and industrial companies.
This year has seen initial public offerings from several local companies, including a group of local hospitals.
Additionally, companies like “Tamkeen Human Resources” and “Al Majed Oud.”
The “Public Investment Fund” plans to list the county’s largest medical procurement company, “Nupco.”
