Tabby: #Saudi Arabian Unicorn Taps HSBC, JPMorgan, Morgan Stanley for IPO - Bloomberg

Tabby: Saudi Arabian Unicorn Taps HSBC, JPMorgan, Morgan Stanley for IPO - Bloomberg

Saudi Arabia-based Tabby, one of the Middle East’s first fintech unicorns, has hired banks to help prepare for an eventual initial public offering, according to people familiar with the matter.

The buy-now, pay-later firm is working with HSBC Holdings Plc, JPMorgan Chase & Co. and Morgan Stanley on the deal, the people said, asking not to be identified as the information isn’t public. The plans at an early stage, and no final decisions have been made on the timing or the size of the offer, they said.

The firm could potentially look to raise additional cash ahead of the listing, according to one of the people. It was valued at $1.5 billion in its most recent funding round, in November 2023.

Representatives for the banks and Tabby declined to comment.

The IPO will add to an already busy pipeline of share sales in the kingdom.

Online brokerage Derayah Financial Co. has launched a $400 million offering, while poultry business Entaj Industrial Services Co. and Umm Al Qura for Development & Construction Co. have announced plans to list on the local bourse this year.

Technology services firm Ejada Systems Ltd. has regulatory approvals for an IPO, while asset manager Riyad Capital and low-cost carrier Flynas have also lined up banks for share sales, Bloomberg News has reported.

Tabby’s backers include Saudi Arabia’s STV and Hassana Investment Co., as well as Sequoia Capital India Soros Capital Management, Wellington Management, Mubadala Investment Capital and Paypal Ventures. The firm also secured an asset-backed line of credit from JPMorgan in 2023.

Tabby was founded in Dubai and moved its headquarters to the kingdom in 2023, in preparation for a planned listing in Riyadh. The firm, which lets customers pay for goods in installments, had 12 million registered users and worked with over 40,000 brands as of June.

Regionally, it operates in Saudi Arabia, the United Arab Emirates and Kuwait, and competes with firms including Tamara. In September, it bought digital-wallet operator startup Tweeq for an undisclosed sum.