Fintechs Look to Join #Saudi Listing Boom Amid Growing Demand - Bloomberg

Fintechs Look to Join Saudi Listing Boom Amid Growing Demand - Bloomberg

Two Saudi Arabian fintechs are preparing to list in Riyadh, people familiar with the matter said, looking to tap into growing demand for such services in the kingdom.

Emkan Finance Co. has hired Morgan Stanley and Al Rajhi Capital to advise on an initial public offering, the people said, declining to be identified as the information is private. The firm — owned by Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets — offers small loans and credit cards to individuals, and reported a net income of 887 million riyals ($236 million) in 2024.

Tamweel Al Oula Co., which provides retail and corporate financing, is also preparing for a public share sale, some of the people said. The company reported a profit of 181 million riyals last year.

Representatives for Al Rajhi Bank, Al Rajhi Capital and Morgan Stanley declined to comment. Representatives for Tamweel Al Oula could not be reached for comment.

Saudi Arabia has been accelerating efforts to diversify its economy and expand financial access under its Vision 2030 economic transformation plan. If Emkan and Tamweel Al Oula list, they will join other consumer finance businesses tapping equity capital markets in the country as it opens up and consumer choices across leisure and entertainment broaden.

One window into the shift: nearly half of Saudi fitness club operator Sport Clubs’ sales came through buy-now-pay-later providers in the first nine months of 2024, up from just 18% in 2022. The sharp rise reflects how installment-based payments are gaining ground in day-to-day spending.

Saudi Arabia has hosted a handful of fintech listings in recent years, many of which have delivered strong early gains. United International Holding Co., which owns Shariah-compliant consumer finance firm Tasheel, raised $264 million last year. The stock is up more than 18% since its listing in December, defying softness in broader Saudi equities.

Meanwhile, fintech Rasan Information Technology Co.’s stock is also up 132% since its $224 million IPO in June 2024.

Al Rajhi Bank is also eyeing an IPO of its tech subsidiary Ejada Systems Ltd., while BNPL unicorn Tabby is working toward a deal, Bloomberg News has reported.