PIF’s Sanabil Backs Mideast Tech Startup Planning For Saudi IPO - Bloomberg
The venture capital arm of Saudi Arabia’s sovereign wealth fund has backed a $135 million fundraising round for technology firm iMENA Holding as the company plans for an initial public offering in the kingdom.
Sanabil Investments injected capital into iMENA along with investors including New York-based VC firm FJ Labs, according to a statement on Sunday. The funding coincides with a move by iMENA to restructure into a Saudi company and base itself in Riyadh ahead of a planned listing on the local stock exchange within two years.
iMENA, established in 2012 as a platform for investing in growing online businesses, has long flagged its intention to IPO but had not previously disclosed specifics on where it intends to offer shares.
Proceeds from the capital raise will be used for pre-IPO funding, business expansion and to boost iMENA’s stakes in three of its portfolio companies: online classifieds operator Opensooq, used car marketplace SellAnyCar, and ride-hailing business Jeeny.
“This transaction marks an important inflection point for iMENA in its journey to IPO-readiness,” Nasir Alsharif, chairman of iMENA, said in the statement.
iMENA’s latest deal comes as Saudi Arabia’s stock exchange tries to attract more technology-related firms to list as part of plans to bring in more foreign investors and become a hub for fundraising. Technology businesses in the kingdom have been scaling up in recent years as investors including Sanabil pour money into the industry hoping to foster economic diversification and job creation.
Companies including Tabby, one of the Middle East’s first fintech unicorns, and technology services firm Ejada Systems, are among those preparing share sales in Saudi Arabia, people familiar have told Bloomberg.
Al Rajhi Capital, the investment banking arm of one of Saudi Arabia’s largest banks, was a financial adviser on the fundraising for iMENA, according to the statement.
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