MORABAHA MARINA FINANCING COMPANY ANNOUNCES THE OFFER PRICE RANGE AND COMMENCEMENT OF INSTITUTIONAL BOOK-BUILDING FOR ITS IPO ON THE MAIN MARKET OF THE SAUDI EXCHANGE

(MENAFN- Teneo) Riyadh, Saudi Arabia, 14 May 2023G: Morabaha Marina Financing Company (“MRNA” or the “Company”), a fully independent non-bank finance institution (“NBFI”), today announces the price range and commencement of participating entities’ bidding and book-building for its initial public offering (the “IPO” or the “Offering”) on the Main Market of the Saudi Exchange. The Company’s approved red herring prospectus, which contains full details of the Offering, has been published on the Capital Market Authority (“CMA”) website on 1 May 2023G.

The price range for the Offering has been set between SAR 13.0 and SAR 14.6 per share (the “Price Range”), implying a total offering size of SAR 278,571,436 million to SAR 312,857,151.2 million. The institutional bookbuilding period has commenced on 14 May 2023G and will end on 18 May 2023G. The final offer price will be determined at the end of the institutional book-building period, and is expected to be announced on 21 May 2023G. Subscriptions for individual investors will be open from 28 May 2023G to 29 May 2023G.

On 26 December 2022G, the CMA approved the Company’s application for an initial public offering of 21,428,572 shares (the “Offer Shares”), representing 30% of MRNA’s issued share capital post capital increase. The Offering is a primary issuance, and the Company intends to use the net proceeds to strengthen its capital base to support future growth in its business activities by generating additional capacity to provide financing to customers.

Company Overview
• MRNA is a leading independent non-bank finance institution in the Kingdom of Saudi Arabia (the “Kingdom”), offering a wide range of innovative and flexible Shari’ah-compliant financing solutions to both individuals and small and medium-sized enterprises (“SMEs”). The Company offers its solutions through Ijarah, Tawarruq and Murabaha products.
• Established in 2012G, MRNA offers finance solutions through its network of 16 branches located in 13 cities in the Kingdom, in addition to its head office in Riyadh. The Company also relies on a multi-channel distribution model through a network of partners, including Saudi Post and Riyad Bank, as well as the SME funding portal developed by the General Authority for Small and Medium Enterprises (Monsha’at).
• The Company is developing advanced digital channels to enable the full credit cycle through its website and mobile application.
• The Company also owns 80% of Digital Payments Company for FinTech (“Loop”), a major electronic money institution licensed by the Saudi Central Bank to offer payment and e-wallet services.
Offering Details
Albilad Investment Company has been appointed by the Company as lead manager, sole financial advisor (the “Financial Advisor”), underwriter and bookrunner (the “Bookrunner”).
The Offering, for which the required CMA and Saudi Exchange approvals have been obtained, will consist of the following:
• MRNA to issue and offer 21,428,572 Offer Shares, representing 30% of the Company’s issued share capital post capital increase.
• The MRNA shares will be listed on the Main Market of the Saudi Exchange following the completion of the offering and listing formalities with both the CMA and the Saudi Exchange.
• The Offering is a primary issuance, and the Company intends to use the net proceeds to strengthen its capital base to support future growth in its business activities by generating additional capacity to provide financing to customers.
• All the Offer Shares will be offered to institutional investors, with a clawback of up to 10% for retail investors in the Kingdom, as determined and at the discretion of the Bookrunner.
• The Offering will consist of 21,428,572 Offer Shares and will be restricted to the following groups of Subscribers:
• Tranche (A): Participating Parties - Comprising the parties entitled to participate in the book-building process as specified under the Instructions for Book-Building Process and Allocation Method in Initial Public Offerings issued by the CMA. Participating entities will provisionally be allocated 21,428,572 Offer Shares, representing 100% of the Offer Shares. The final allocation for the participating entities will be made upon the expiry of individual investors’ subscription period, using the discretionary allocation mechanism. Therefore, no Offer Shares may be allocated for some of the participating entities. If there is sufficient demand by individual investors, the Bookrunner in coordination with the Company shall have the right to reduce the previously allocated Offer Shares to participating entities to 19,285,715 Offer Shares, representing 90% of the total Offer Shares.
• Tranche (B): Individual Investors - Comprising Saudi Arabian natural persons, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi person who can subscribe for her own benefit or in the names of her minor children, on the condition that she proves that she is a divorcee or widow and the mother of her minor Saudi Arabian children, as well as any non-Saudi natural persons resident in the Kingdom or GCC natural persons, in each case who have a bank account with a receiving agent and the right to open an investment account with a capital market institution. A subscription for Offer Shares made by a person in the name of his divorced wife shall be deemed invalid and the applicant shall be subject to the sanctions prescribed by law. If a duplicate subscription is made, the second subscription will be considered void and only the first subscription will be accepted. A maximum of 2,142,857 Offer Shares, representing 10% of the total Offer Shares shall be allocated to individual investors. If the individual investors do not subscribe in full to the Offer Shares allocated to them, the Bookrunner in coordination with the Company may reduce the number of Offer Shares allocated to individual investors in proportion to the number of Offer Shares subscribed by them.
Offering Timetable
IPO Milestone Date
Price Range Announcement and Institutional Bookbuilding Commencement 24/10/1444H (14 May 2023G)
Institutional Bookbuilding Closing 28/10/1444H (18 May 2023G)
Announcement of Final Offer Price 1/11/1444H (21 May 2023G)
Retail Offering Commencement 8/11/1444H (28 May 2023G)
Retail Offering Closing 9/11/1444H (29 May 2023G)
Expected Commencement Date for Trading the
Shares Trading of the Company’s shares on the Main Market of the Saudi Exchange is expected to start after completion of all of the
relevant legal requirements and procedures. The trading commencement date of the Shares will be
announced in local newspapers and Tadawul’s website (

MENAFN14052023006068013223ID1106238859