Al Rajhi Bank’s tech arm hires Goldman Sachs for IPO: Ejada Systems, a local tech services firm owned by Al Rajhi Bank, hired Goldman Sachs and Al Rajhi Capital to arrange an IPO that could see the firm valued at up to USD 1.5 bn, Bloomberg reports, citing sources it says are familiar with the matter. Ejada is reportedly looking to sell a minimum 30% stake in an IPO that could happen in “the next few months,” the sources added. No final decisions have been made regarding the timeline or size of the offering.

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Meet Ejada: Ejada Systems provides IT services to local and regional public and private sector players, assisting clients in streamlining operations and increasing efficiency, according to its website. The company’s services portfolio includes analytics and business intelligence, enterprise resource planning, customer engagement, payment and finances, as well as services to help businesses meet compliance and regulatory requirements.

IN CONTEXT- Tech listings are a rare sight for the local IPO market despite the recent surge in the Saudi IPO market, Bloomberg notes. Fintech player Rasan was one of the few to go public this year, raising USD 224 mn in an IPO that saw high demand from investors. The outfit’s stock price rose sharply on its debut on Tadawul and is now up 70% from its IPO offering price.

SAUDI IPO PIPELINE AT A GLANCE-

Among the transactions now in the market or expected soon:

  • Fourth Milling Company (MC4) closed the retail tranche of its Tadawul IPO with a 3.9x oversubscription rate this week. The company is taking a 30% stake to market;
  • Arabian Mills is selling a 30% stake on Tadawul, with its institutional offering selling out within hours and closing 132x oversubscribed;
  • Nice One Beauty Digital Marketing Company has received regulatory approval to offer a 30% stake on Tadawul;
  • Shalfa Facilities Management is planning to offer a 15% stake on the Nomu parallel market;
  • Naqawa for Information Technology (Purity Tech) is taking a 25% stake public in an IPO on Tadawul’s parallel market Nomu;
  • Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
  • Aster DM Healthcare looks set to spin off its GCC assets and seek a dual listing on Tadawul and in the UAE;
  • PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital;
  • Nupco — a unit of the PIF — has reportedly tapped Rothschild & Co as financial advisor for its potential Tadawul IPO;
  • Budget airline Flynas is reportedly looking to go public this year.
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