#Saudi Extra Offers 30% Stake in Finance Unit in Riyadh IPO Boom - Bloomberg

Saudi Extra Offers 30% Stake in Finance Unit in Riyadh IPO Boom - Bloomberg

Saudi Arabia-based United Electronics Co., known as Extra, will proceed with the listing of a 30% stake in its financial services unit on the Saudi main market.

The subsidiary, United International Holding Co., parent of Tasheel Finance, announced on Sunday its plan to float 7.5 million shares. The entire amount raised will be distributed to Extra, the selling shareholder, according to a statement.

HSBC Saudi Arabia and EFG Hermes KSA have been hired to arrange the offering, which may come in the next few weeks.

The electronics retailer established Tasheel Finance in 2019 to provide funding solutions to its costumers. Tasheel provides credit financing among other digital services. The subsidiary saw 59 million riyals ($15.7 million) in profit in the third quarter, representing 11% growth year on year.

Saudi Arabia has seen more than $15 billion in share sales this year, largely driven by Saudi Aramco’s $11.2 billion secondary offering in July.

So far this year, Riyadh has hosted a range of IPOs including a local hospital group, a human resource firm and a perfume maker.

Buy-now-pay-later firm Tabby is also considering plans to list.