{"id":91671,"date":"2024-11-19T00:00:00","date_gmt":"2024-11-19T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/11\/19\/united-international-holding-company-kicks-off-its-ipo-retail-subscription-today\/"},"modified":"2024-11-19T00:00:00","modified_gmt":"2024-11-19T00:00:00","slug":"united-international-holding-company-kicks-off-its-ipo-retail-subscription-today","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/11\/19\/united-international-holding-company-kicks-off-its-ipo-retail-subscription-today\/","title":{"rendered":"United International Holding Company kicks off its IPO retail subscription today"},"content":{"rendered":"

Good morning, wonderful people. The only thing more packed than this morning\u2019s issue <\/strong>are Riyadh\u2019s roads on weekday afternoons.<\/strong> We have for you this morning news from UIHC\u2019s IPO, EFG Hermes\u2019 USD 300 mn Saudi-focused education fund, a passel of developments on Planet Startup, and a look at the real estate market in the week after Cityscape Global. <\/p>\n

BUT FIRST- We\u2019re delighted this morning to welcome <\/strong>Tas\u2019heel Finance<\/a><\/strong> as our anchor <\/strong>sponsor of EnterpriseAM Saudi Arabia. <\/strong>Tas\u2019heel is a fast-growing innovator in the Kingdom\u2019s burgeoning digital financial services market. It\u2019s the leading NBFI installment provider in the Kingdom and has built on its cornerstone partnership with electronics giant eXtra to include more than 300 retailers and service providers from Ikea to Saudi-German Hospital, Virgin Megastore, and Gold\u2019s Gym. It serves hundreds of thousands of clients online and at in-person locations across the Kingdom, offering personal finance, installments, credit cards, and more. <\/p>\n

Tas\u2019heel is a company with ambitions that match ours: <\/strong>Led by a globally experienced management team, it aims to be the leading multi-product, multi-category digital financial services company in the Kingdom as well as Saudi\u2019s largest provider of Shariah-compliant consumer finance solutions. <\/p>\n

Please join us in welcoming the good people at Tas\u2019heel to EnterpriseAM Saudi. <\/strong>Their support ensures your morning read is available without charge every weekday morning. <\/p>\n

IPO WATCH-<\/p>\n

<\/a> #1- Our friends at Tas\u2019heel kick off this morning the two-day retail <\/strong>subscription for their IPO on Tadawul\u2019s main market.<\/strong> The United International Holding Company \u2014 which owns and operates the Tas\u2019heel brand name \u2014 will offer 10% of the shares in its IPO to individual investors, who can place orders for up to 250k shares per buyer. The final allocation of shares will take place next Monday (25 November). <\/p>\n

The institutional offering was a runaway success, selling out within minutes of opening <\/strong>last month<\/a><\/strong> as investors placed bids totalling more than SAR 131 bn, making the offering 132x oversubscribed.<\/p>\n

REFRESHER-<\/strong> The financial services arm of United Electronics Company (eXtra) is taking a 30% stake<\/a> to Tadawul and has priced the IPO at the top of its indicative range at SAR 132 apiece. The final pricing will see selling shareholders lock in SAR 990 mn in total proceeds, giving the firm a market cap of SAR 3.3 bn at listing. The offering will see eXtra pocket all of the proceeds after an estimated SAR 37 mn are put aside to cover IPO-related expenses, and SAR 190 mn go to repaying some of eXtra\u2019s debt.<\/p>\n

ADVISORS-<\/strong> Our friends at HSBC Saudi Arabia <\/strong>are quarterbacking the transaction as sole financial advisor and lead manager, while also acting as joint bookrunners and underwriters with the good folks at EFG Hermes KSA<\/strong>. Our friends at Baker McKenzie are international legal counsel to the bankers, while The Law Firm of Salah Al-Hejailan and Feshfields are advising UIHC.<\/p>\n

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#2-<\/strong> Multiple Saudi companies are said to be mulling listings on the Hong Kong Exchange<\/strong> in a bid to raise funds for infrastructure projects in Saudi Arabia, HKEX Chairman Carlson Tong Ka-shing told South China Morning Post<\/a>, citing senior officials from Tadawul and the PIF who spoke with a Hong Kong delegation in Riyadh last month.<\/p>\n

What he said: <\/strong>\u201cIt is a win-win situation for Saudi companies to list in Hong Kong as they can raise funds to diversify their economy, while Hong Kong and international investors can also access the Gulf economy,\u201d explained Ka-shing.<\/p>\n

BACKGROUND- Investors are increasingly active on the Riyadh-Hong Kong corridor. <\/strong>Bank Albilad rolled out the SAR 4.49 bn CSOP MSCI Hong Kong China ETF last month<\/a> to become Saudi Arabia\u2019s largest ETF to track Hong Kong-listed Chinese stocks. That mirrored Hong Kong\u2019s move<\/a> to list a Saudi-focused ETF on the Hong Kong exchange in November of last year<\/a>.<\/p>\n

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#3-<\/strong> Qualified investors have until Thursday to subscribe to Arabica Star\u2019s 25%<\/a>stake offering<\/a> on Tadawul\u2019s parallel market, Nomu. The final allocation of shares is slated for Tuesday, 26 November.<\/p>\n

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WEATHER- <\/strong>Riyadh is looking at a high of 31\u00b0C and a low of 16\u00b0C today. Over in Makkah, the mercury will peak at 34\u00b0C and hit a low of 24\u00b0C. Meanwhile, Dammam is looking at a high of 31\u00b0C and a low of 20\u00b0C.<\/p>\n

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WATCH THIS SPACE-<\/p>\n

<\/a> #1- Global index provider <\/strong>FTSE Russell is set to increase Aramco\u2019s investability <\/strong>weight in its <\/strong>Global Equity Index Series <\/strong>(GESI) to 2.38%, up from 1.85%<\/strong> as part of its December 2024 quarterly review, it said in a statement (pdf)<\/a>. The increased investability weight means greater visibility to international investors and could lead to more foreign capital inflows, supporting Aramco\u2019s global market appeal. The statement has all the details on how Aramco\u2019s weight will change in selected FTSE Russell headline indices.<\/p>\n

IN CONTEXT- <\/strong>The update follows Aramco\u2019s USD 12.4 bn secondary offering<\/a> back in June, which redistributed some ownership to international and local investors, while the Saudi government retained a 97.62% stake.<\/p>\n

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#2- Egypt\u2019s Mountain<\/strong> View expands into Saudi market with SAR 1.2 bn <\/strong>investment:<\/strong> Real estate developer Mountain View has entered the Saudi market with a SAR 1.2 bn investment that will see the developer build 500 housing units in the Kingdom, Argaam<\/a> reports. <\/p>\n

We saw this coming:<\/strong> Back in September<\/a>, Mountain View announced that it would be introducing its first project \u2014 developed in partnership with local developers Maya Real Estate Development and Investment and Al Saedan Real Estate \u2014 to the Kingdom by November.<\/p>\n

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<\/a> #3- Financial services providers can now manage transactions on omnibus <\/strong>accounts for the Saudi debt market<\/strong> after the Saudi Securities Depository Center (Edaa) kicked off omnibus accounts for debt securities, according to an announcement on Tadawul<\/a>. The launch follows the Capital Markets Authority\u2019s (CMA) approval of new omnibus regulations<\/a> which took effect on Thursday, with the updated guidelines looking to increase efficiency and streamline investor access to Saudi securities by consolidating accounts. The CMA had drafted the amendments earlier this year<\/a>.<\/p>\n

Uh, Enterprise? What are omnibus accounts?<\/strong> An omnibus account is a shared investment account that pools together the assets and trades of several customers, allowing brokers to execute, and clear trades on behalf of clients. Omnibus account transactions are executed in the broker\u2019s name, which allows individual investors to maintain anonymity.<\/p>\n

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#4- Nomu-listed Banan Real Estate received regulatory approval from the Saudi <\/strong>Exchange to <\/strong>transition to the main market<\/a><\/strong>, according to a statement<\/a>. The SAR 200 mn company will continue to trade on Nomu until the transfer document is published. Trading will then halt for up to five sessions before listing on the main market. Tadawul hasn\u2019t given dates for the move.<\/p>\n

#5- <\/strong>Nomu-listed food delivery app Jahez International also lined up approval to<\/strong> transfer<\/a><\/strong>to the<\/a><\/strong>Tadawul main market<\/a><\/strong>, according to a statement<\/a>. The SAR 104.9 mn company will continue trading on Nomu until the transfer is finalized. The exact dates will be announced once the process is finalized.<\/p>\n

#6- <\/strong>Yaqeen <\/strong>Capital received approval from the Capital Market Authority for the public <\/strong>offering of its Opportunistic Fund<\/strong>, according to a statement<\/a> from the authority. No further details about the offering were provided.<\/p>\n

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NEWS TRIGGERS-<\/p>\n

A handful of news triggers coming up in the next few weeks:<\/strong><\/p>\n