Global law firm White & Case LLP and The Law Office of Megren M. Al-Shaalan (LOMAS) have advised Nayifat Finance Company (Nayifat) on its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul), marketed and offered to international investors outside of the United States in reliance on Regulation S.
Nayifat offered to both institutional and retail investors 35 million ordinary shares, amounting to 35 percent of its share capital. With the total IPO proceeds raising SAR 1.19 billion (US$317 million), Nayifat's implied market capitalisation was approximately SAR 3.4 billion (US$906.6 million) at the commencement of trading.
The institutional offer comprised 90 percent of the Offer Shares and was oversubscribed by 13,600 percent, raising SAR 162 billion (US$43.2 billion). The remaining 3.5 million shares, offered to retail investors at SAR 34 (US$9.06), was oversubscribed by 9,200 percent.
Nayifat is a pioneer in the non-banking financing market in the Kingdom of Saudi Arabia, with an 18 percent market share by loans in consumer finance in the first quarter of 2021. Nayifat also provides SME financing, credit card financing, and has recently expanded its product range by introducing Fintech lending through its crowd-funding platform, ULend.
The White & Case and LOMAS team which advised on the transaction was led by partners Sami Al-Louzi (Dubai), Laura Sizemore (London) and Megren Al-Shaalan (LOMAS, Riyadh) and associate Ibrahim Soumrany (Dubai), and included associates Manal Al-Musharaf, Jad Slim, Nawaaf Alawaad, Simon O'Connell-Schizas (all LOMAS, Riyadh), Ahmed Bekheit, Ahmad Ashraf Ali (both Cairo), Eren Ayanlar (Dubai), Waad Alkurini, Nezar Al Abbas, Reem Al Bakr, Elaf Al-Wohaibi and Hend Bahabri (all LOMAS, Riyadh).
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