nayifat: Saudi Islamic finance company Nayifat plans float in Riyadh

Saudi Arabia’s Nayifat Finance Company announced on Tuesday that it is planning an initial public offering (IPO) on the Riyadh Stock Exchange with a free float of 35% of its shares.

Nayifat, a consumer-focused Islamic finance company, said in a statement that it plans to sell 35 million shares to institutional and retail investors.

The sale of existing shares will be carried out by its current shareholders, he said.

Falcom Holding, a Saudi company that has vehicle leasing and financing businesses, as well as brokerage, investment advisory and asset management services, has a 73.86% stake in Nayifat.

IPO activity in Saudi Arabia has boomed in recent years, with several companies considering IPOs.

A public sale of shares will allow Nayifat to capitalize “on its core consumer business while expanding its portfolio of financing solutions such as credit cards, SME loans and its new

crowdfunding platform,” he added.

Nayifat’s intention to float did not include details on how much it planned to raise in the IPO or give a price range.

HSBC acts as financial advisor, lead bookrunner, lead manager and lead underwriter. Saudi Fransi Capital and GIB Capital act as bookrunners and joint underwriters.

The Saudi Capital Markets Authority said in September it planned to speed up applications from companies, adding that 45 companies were awaiting approvals.

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