Saudi food delivery company Jahez prices IPO at top of range

Saudi food delivery firm Jahez, which competes with companies like Delivery Hero’s Hungerstation, is set to be one of the Middle East’s most valuable public technology firms after pricing its initial public offering at the top end of a planned range.

The final offer price has been set at SAR850 ($226.48) per share, implying a market value of SAR8.9bn, the company said on Sunday. Jahez International Company for Information Systems Technology, as the firm is formally known, plans to sell just over two million shares to raise about SAR1.8bn.

The offering was 38.8 times oversubscribed, the latest sign of demand for new firms in the Gulf nation. Riyadh has been the hottest market for IPOs in the region in recent years, though neighbouring Abu Dhabi and Dubai are also stepping up efforts. The deep pipeline for IPOs is one of a few factors expected to support Gulf bourses in 2022.

The kingdom’s most recent sale came from its sovereign wealth fund, which offered part of its stake in Saudi Telecom, a deal that was “significantly” oversubscribed but priced at the low end of the range.