Nayifat Finance Company Announces Intention to List on the Saudi Stock Exchange (Tadawul)

(MENAFN- Instinctif Partners ) Nayifat Finance Company (“Nayifat” or “the Company”), one of Saudi Arabia’s leading non-bank financial institutions (“NBFI”), announces its intention to proceed with an initial public offering (the “IPO” or the “Offering”) on the Main Market of the Saudi Stock Exchange (“Tadawul”). The Offering will comprise 36,500,000 Ordinary New Shares, representing 30.041% of the total share capital of the Company after the Offering. The Capital Market Authority (“CMA”) issued its resolution on 31 March 2019, approving the application for the offering. The net proceeds due to the Company will be used to grow the company’s financing portfolio and add credit cards to its product range. Current shareholders will not receive any proceeds from the Offering.

Mr. Saud Huwaimel Farraj Al Dosari, Chairman of Nayifat Finance Company, commented:
“The announcement of our Intention to List on Tadawul is an important milestone for the Company, with the forthcoming IPO set to boost us on our growth trajectory. For some time, we have occupied a leading position in the Saudi NBFI industry, and this latest achievement is testament to the diligence and hard work that have been shown by management and staff since Nayifat’s foundation in 2002. With a track record of servicing more than 250,000 customers, and a current active loan book of more than 40,000 borrowers, the proceeds from our listing will be instrumental in enabling us to grow our footprint in the Kingdom.”

Mr. Abdulmohsen Al Sowailem, Chief Executive Officer at Nayifat Finance Company, said:
“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. Our aim is to consolidate Nayifat’s place as Saudi Arabia’s premier NBFI, with 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% of our equity to the public. An increasingly stable economic environment and robust regulatory framework – both of which are highly supportive of the SME customer segment – will further enhance our growth objectives.”

OVERVIEW OF THE OFFERING

• Listing of Ordinary Shares on the Main Market of the Saudi Stock Exchange (Tadawul).

• The Offering comprises 36,500,000 New Ordinary shares (“Offer Shares”).

• Immediately following formal listing, Nayifat Finance Company is expected to have a free float of approximately 30.0% of its issued share capital.

• The IPO will comprise of 36,500,000 Offer Shares to parties entitled to participate in the book-building process (“Institutional Tranche”) in accordance with the CMA Instructions on Book-Building and Allocation of Shares in Initial Public Offerings. Following the completion of the Institutional Tranche, the Offer Shares will also be offered to individual investors in Saudi Arabia (“Retail Tranche”). Initially, 100% of the Offer Shares will be provisionally allocated to the Institutional Offering. This may be reduced to thirty-two million eight hundred and fifty thousand (32,850,000) Ordinary Shares, which represent ninety percent (90%) of the total Offer Shares depending on the level of demand by individual investors in the Kingdom. The final number of Offer Shares allocated to the Institutional Tranche will be accordingly adjusted based on subscriptions from individual investors in the Retail Tranche.

• The offer of Offer Shares in the Institutional Tranche will be made as follows:

• Within Saudi Arabia, including but not limited to Government entities and Government owned companies, public and private investment funds/companies, persons authorised by the CMA ("Authorised Persons") and certain institutional clients of Authorised Persons
• Qualified Foreign Investors (“QFIs”) will be permitted to trade in the Shares after their trading starts on the Exchange, in accordance with CMA Rules for Qualified Foreign Financial Institutions Investment in Listed Shares.

• Excess subscription monies, if any, will be refunded to the Subscribers without withholding any charge or commission by the Lead Manager or the Selling Agents. Announcement of the final allotment and refund of excess subscription monies, if any, will be made no later than July 23rd 2019.

• The Substantial Shareholders will be subject to a restriction period during which they will be prohibited from selling their Shares for a period of six (6) months (the “Lock-up Period”) as of the date trading starts on the Saudi Stock Exchange. Shareholders of the Company who own 5% or more of its shares are: FALCOM Holding Company (71.68% prior to the Offering), Saud Huwaimel Farraj Al Dosari (7.58% prior to the Offering) and Abdulaziz Saud Omar Al Blehed (7.04% prior to the Offering).

• CMA and Tadawul approvals have been obtained for the Offering.

• The Company has appointed NCB Capital Company as Financial Advisor (the “Financial Advisor”), Sole Bookrunner and Underwriter (the “Underwriter”) and the Lead Manager (the “Lead Manager”), in relation to the Offer Shares. In addition, Falcom Financial Services has been appointed as Co-Financial Advisor (the “Co-Financial Advisor”).

• The Company has appointed AlDhabaan & Partners in association with Eversheds Sutherland (International) LLP as the legal advisor to the IPO and Offer Shares.

• Timetable
Start of Institutional Book Building: Monday, June 24, 2019
Close of the Institutional Book Building:* Tuesday, July 02, 2019
Price Announcement: Thursday, July 04, 2019
Provisional Allocation: Thursday, July 04, 2019
Receipt of Institutional Investors Application Forms: Sunday, July 07, 2019
Last Date for Institutional Investor Funding: Thursday, July 11, 2019
Final Allocations: Thursday, July 18, 2019
Expected trading commencement date for the Shares The Shares trading commencement is expected to start after completion of all the relevant legal requirements and procedures. Announcement of the Shares trading commencement will be made through local newspapers and Tadawul’s website (www.tadawul.com.sa).



About Nayifat Finance Company
Nayifat Finance Company is Saudi Arabia’s leading non-bank financial institution (“NBFI”) for consumers and SMEs. Established in 2002 and headquartered in Riyadh, Nayifat was among the first institutions in Saudi Arabia to be licensed as a Finance Company by the Saudi Arabian Monetary Agency (SAMA). Nayifat is the preferred NBFI in Saudi Arabia, providing Shari’a-compliant financing solutions – including Tawarruq, Murabaha and Ijarah – to more than 250,000 customers since inception (as at 31 March 2019). In 2019, Nayifat entered the local credit card market in partnership with Visa, becoming one of the first Saudi Finance Companies to receive a credit card license from SAMA as a principal issuer. With a network of 24 branches across the Kingdom, and more than 40,000 active creditworthy customers, Nayifat’s gross asset portfolio stands at SAR 2.23 billion as at 31 March 2019. To find out more, visit www.nayifat.com.

Enquires
Media enquiries

Instinctif Partners (GCC/international)
George Allen
+971 55 104 3586
george.allen@instinctif.com

Advert One (Saudi Arabia)
Mustafa Othman
+966 50 523 4749
mustafa.othman@advert1.com

Financial advisor

NCB Capital
Abdulaziz Behery
+966 11 874 7106
NCBC.CM@alahlicapital.com


Co-Financial advisor
Falcom Financial Services
Rami Atwan
+966 11 211 8487
Rami.Atwan@falcom.com.sa

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