Nayifat Finance Company, a Saudi-based non-bank financial institution, has announced its intention to proceed with an initial public offering (IPO) on the main market of the Saudi Stock Exchange (Tadawul).
The offering will comprise 36,500,000 ordinary new shares, representing 30.041 percent of the total share capital of the company.
The net proceeds will be used to grow the company’s financing portfolio and add credit cards to its product range, the company said in a statement, adding that current shareholders will not receive any proceeds from the IPO.
Saud Huwaimel Farraj Al Dosari, chairman of Nayifat Finance Company, said: “The announcement is an important milestone for the company, with the forthcoming IPO set to boost us on our growth trajectory."
Abdulmohsen Al Sowailem, CEO at Nayifat Finance Company, added: “We have identified opportunities for expansion, which will see our loan book grow considerably between now and 2023 in line with the National Transformation Plan and the Financial Sector Development Program which forms part of Saudi Vision 2030.
"Our IPO is an important step for setting those growth plans in motion, especially through the diversification of our product offering and expansion of our financing business... key pillars of our expansion being consumer finance and our expansion in SME financing and credit card products.
"These initiatives require capital, of which we aim to raise a healthy portion through offering roughly 30 percent of our equity to the public."For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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