Saudi IPO Boom Continues: United International Holding Oversubscribed in Minutes
United International Holding Co., a leading Saudi Arabian financial services firm, saw all shares in its initial public offering (IPO) snapped up within minutes of subscriptions opening, Bloomberg reports.
This signifies continued strong demand for listings in the region, fueled by a robust economic environment and growing investor appetite.
The IPO, seeking to raise up to 990 million riyals (approximately $264 million), offered shares at a price range of 120 to 132 riyals per share. United Electronics Co., known as Extra, the parent company of United International, is selling 7.5 million shares, representing a 30% stake in the firm.
Local funds, designated as cornerstone investors, have committed to subscribing to 15.6% of the offer, further indicating strong investor confidence. HSBC Saudi Arabia is the lead manager of the IPO, while EFG Hermes KSA is the joint-bookrunner. Institutional investors can subscribe until November 4th, while retail investors will have the opportunity to participate on November 19th and 20th.
This IPO adds to a burgeoning pipeline of new listings in Saudi Arabia, which has seen $15.8 billion raised through IPOs this year. This strong performance is largely driven by the historic $12.3 billion secondary sale of shares in Saudi Aramco.
United International is one of several private companies taking advantage of the favorable market conditions for listings in the Middle East. Notably, Abu Dhabi-based grocer LuLu Retail Holdings Plc successfully raised $1.43 billion from its IPO, which also saw subscriptions exceed the offering in under an hour.
Further highlighting the regional momentum, food delivery service Talabat and IT services firm Alpha Data are planning to list in the United Arab Emirates, while buy-now-pay-later firm Tabby is considering an IPO in Saudi Arabia.
United International, through its units Tas’heel Finance and Procco Financial Services, is a major provider of Shariah-compliant consumer finance services in Saudi Arabia.
