Saudi Arabia’s United International kicks off SAR990m Riyadh IPO

Saudi Arabia finance firm United International Holding Company (UIHC) is seeking to raise as much as $264m (SAR990m) from the sale of a 30 per cent stake in an initial public offering (IPO), it disclosed on Monday.

The indicative price range was set between SAR120 and SAR132 per share, implying a market capitalisation of between SAR3bn and SAR3.3bn, it said in a statement.

UIHC, the parent of Tasheel Finance and Procco, is offering 7.5 million shares, representing 30 per cent of the company’s total issued share capital.

The financial services firm is offering the shares in two tranches – institutional investors and retail investors – between October 28 and November 04. The final offer price will be determined at the end of the book-building process.

UIHC’s IPO drew in three cornerstone investors – Zamil Group Investment Company, A.K. Al Muhaidib & Sons Company and Tawuniya – that will subscribe for a total of 1.2 million shares at the IPO price, representing approximately 15.6 per cent of the offering.

The group appointed HSBC Saudi Arabia and EFG Hermes’ local unit as joint global coordinators and bookrunners for the IPO.

The entire amount raised will be distributed to United Electronics Company (eXtra), the selling shareholder.

Founded in 2019, Tasheel provides credit financing, among other digital services. Since its inception, it has served more than 200,000 customers, and in 2023, the company expanded its network to include over 50 retailers and service providers.

Tasheel posted $15.7m (SAR59m) in third-quarter profit, representing 11 per cent growth year-on-year. Procco supports Tasheel by offering back-office services such as data entry, file processing, and telemarketing.

UIHC joined a wave of private company listings in the Middle East this year, with food delivery service Talabat and IT services firm Alpha Data also considering listings in the UAE, while buy-now-pay-later firm Tabby plans to list in Riyadh.

The offering joins a flurry of new share sales this year, which have raised just shy of $8bn, with the UAE accounting for around 30 per cent — despite ongoing geopolitical tension in the Middle East.

The GCC region’s biggest grocer, Lulu Retail Holdings, plans to raise $1.43bn from its IPO on the Abu Dhabi Securities Market, while Oman’s OQ Exploration & Production tanked in its trading debut on the Muscat Stock Exchange after a record $2bn share sale.

Read: UAE’s Lulu Retail sets IPO price range of up to Dhs2.04 per share