Saudi Islamic finance firm Nayifat considers float in Riyadh

Transaction information is displayed on the screens of the Saudi Stock Exchange, Riyadh, Saudi Arabia, March 9, 2020. REUTERS / Ahmed Yosri / File Photo

DUBAI, Oct. 12 (Reuters) – Saudi Arabian Nayifat Finance Company said on Tuesday it was 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 firm, said in a statement that it plans to sell 35 million shares to institutional and retail investors. The sale of the existing shares will be carried out by its current shareholders, he said.

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

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

A public sale of shares will allow Nayifat to capitalize “on its main consumer activity while developing its portfolio of financing solutions such as credit cards, loans to SMEs and its new FinTech crowdfunding platform”, a- he added.

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

HSBC (HSBA.L) acts as financial advisor, lead bookrunner, lead manager and lead underwriter. Saudi Fransi Capital and GIB Capital act as joint bookrunners and co-underwriters.

Saudi Arabia’s Capital Markets Authority said in September that it plans to speed up applications from companies, adding that 45 companies are awaiting approvals.

Reporting by Hadeel Al Sayegh; Editing by Alexander Smith

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