Riyadh-based Nayifat Finance to proceed with IPO on Tadawul

Riyadh-based non-bank financial institution Nayifat Finance Company is planning an initial public offering (IPO) on the Saudi Stock Exchange (Tadawul).

The institutional book building is expected to start on June 24, 2019, while final allocations are scheduled for July 18, 2019, the company said on Monday.

The offering will comprise 36.5 million ordinary new shares, representing 30.041 percent of the total share capital of the company after the offering, a statement said, adding that the Capital Market Authority (CMA) and Tadawul approvals have been obtained for the offering.

“The net proceeds due to the Company will be used to grow the company’s financing portfolio and add credit cards to its product range. Current shareholders will not receive any proceeds from the offering,” the statement added.

Last week, the company disclosed its financial statements over the three-month period that ended March 31, 2019, while announcing a strategic plan for growth.

NCB Capital Company has been appointed as the financial advisor, sole bookrunner, underwriter and lead manager for the IPO.

The shares trading commencement is expected to start after the completion of relevant legal requirements and procedures, the company said in the statement.