#Saudi Tech Firm Ejada Taps Goldman for IPO at $1.5 Billion Value - Bloomberg

Saudi Tech Firm Ejada Taps Goldman for IPO at $1.5 Billion Value - Bloomberg

Ejada Systems Ltd. is considering an initial public offering in Riyadh at a valuation of as much as $1.5 billion, marking a rare listing by a technology services firm in Saudi Arabia.

Goldman Sachs Group Inc. and Al Rajhi Capital have been hired to arrange the potential offering, which could come in the next few months, people familiar with the matter said, asking not to be identified as the discussions are confidential.

Ejada is owned by Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets. The bank could look to sell at least 30% in the business, according to the people.

No final decisions have been made about the size or timing of the offering. Representatives for Ejada and Goldman Sachs declined to comment, while Al Rajhi Capital did not respond to a request for comment.

Riyadh has seen more than $15 billion worth of share sales this year, mostly down to Saudi Aramco’s bumper secondary offering in July. That figure includes a flurry of listings, which have raised over $3 billion.

Like some Gulf peers, Saudi Arabia is trying to diversify its stock exchange beyond banks and industrial companies that have typically dominated it.

So far this year, Riyadh has hosted IPOs from a range of firms, including a local hospital group, a human resource firm, and a perfume maker. Meantime, the Public Investment Fund is planning to list the kingdom’s largest medical procurement firm.

But listings by tech firms have been relatively rare. Among them, Rasan Information Technology Co., which this year drew orders worth $29 billion for its $224 million IPO. The stock surged in its Riyadh debut and is up 70% from its offer price.

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