Nice One Beauty Digital Marketing IPO Overview

Nice One Beauty Digital Marketing Company ("Nice One"), a leading beauty and care e-commerce platform in Saudi Arabia, has announced its intention to proceed with an Initial Public Offering (IPO) and list its shares on the Main Market of the Saudi Exchange (Tadawul).

The Capital Market Authority (CMA) approved Nice One's application on September 25, 2024, to register its share capital and offer 34,650,000 ordinary shares. The offering consists of:

• Sale Shares: 29,150,000 existing shares (25.24% of the company's capital post-offering) sold by existing shareholders on a pro-rata basis.
• New Shares: 5,500,000 newly issued shares (4.76% of the company's capital post-offering) as part of a capital increase.

Combined, the offering represents 30% of the company's issued share capital after the capital increase.

Use of Proceeds:

• Proceeds from the Sale Shares will be distributed to existing shareholders proportionally.
• Remaining proceeds will be allocated to the company for:
  • Financing working capital.
  • Developing and marketing its own brands and sales channels.
  • Enhancing logistic and technical capabilities.
  • Achieving general business objectives.

Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO

IPO Summary

Key Investment Highlights

1. Market Position and Brand Equity

• Established in 2017, Nice One is a leading e-commerce retailer in Saudi Arabia.
• Fulfilled 2.9 million orders and sold 18 million units in 2023.
• Built a strong brand reputation, supported by 2 million social media followers.

2. Strong Marketing Capabilities

• Expert in leveraging digital marketing and influencer partnerships.
• Achieved a 58% increase in new customer acquisition (Q1 2023–Q1 2024).
• Reduced customer acquisition costs by 36% during the same period.

3. Integrated Digital Platform

• Seamless user experience with advanced infrastructure and a database of 4+ million registered customers.
• Achieved 90%+ customer satisfaction and over 8 million app downloads.
• Maintained 99% platform uptime in 2023, ensuring operational efficiency.

4. Product Sourcing and Dynamic Sales Strategy

• Sources 82% of products locally with a catalog of 28,000+ SKUs, including exclusive and international brands.
• Uses advanced analytics for dynamic pricing and demand prediction, optimizing profitability.

5. Reliable Supply Chain Infrastructure

• End-to-end supply chain management, including same-day delivery in major cities.
• Employs warehouse automation and a proprietary transportation fleet for efficient logistics.

6. Own Brands and Strategic Brand Partnerships

• Own brands contributed 20% of product revenue in 2023, growing at a CAGR of 103.4%.
• Partnerships with 1,200+ international brands offer exclusive products and joint marketing campaigns.

7. Financial Performance

• Achieved a revenue CAGR of 32% (2021–2023), with SAR 782.4 million revenue and SAR 32.6 million net profit in FY 2023.
• Profitability driven by high-margin products, cost reductions, and growth in own brands.

8. Ambitious Management and Strategic Shareholders

• Led by founders with expertise in beauty, personal care, and digital technology.
• Supported by strategic shareholders driving innovation and long-term growth.

Investor Groups

Tranche (A): Participating Parties

• Eligibility: Investors eligible to participate in the Book-Building process as per the Instructions for Book Building Process.
• Initial Allocation: 34,650,000 Offer Shares, representing 100% of the total Offer Shares, are allocated to Participating Parties initially.
• Final Allocation: If there is sufficient demand from Individual Subscribers (Tranche B), the allocation to Participating Parties can be reduced to a minimum of 31,185,000 Offer Shares (90%).
• Determination: The number and percentage of shares allocated will be finalized by the Financial Advisors in coordination with the Company.

Tranche (B): Individual Subscribers

• Eligibility: Includes:
  • Saudi Arabian nationals.
  • Saudi female divorcees or widows with minor children from a non-Saudi marriage (proof required).
  • Non-Saudi residents in Saudi Arabia and Gulf Cooperation Council nationals with an investment account or an active portfolio.
• Conditions:
  • Subscription in another’s name (e.g., a divorcee) is invalid and subject to regulatory enforcement.
  • Duplicate subscriptions will result in only the first one being valid.
• Allocation: A maximum of 3,465,000 Offer Shares (10%) is allocated to Individual Subscribers.
• Adjustment: If Individual Subscribers do not fully subscribe to their allocation, the Lead Manager may reduce the shares allocated to them proportionally.

Substantial Shareholders of the Company Pre- and Post Offering

* Wajhat AlHamra for Investment Company, Darb AlNomu Investment Company and Tareek Al Nomu Investment Company are all fully owned by Namara Investments Company.
Source: The Company

Expected Offering Timetable

Note: The above timetable and dates therein are indicative. Actual dates will be communicated in announcements made in local daily
newspapers in the Kingdom, on the Tadawul website (https://www.saudiexchange.sa), the Company’s website (www.niceonesa.com) and
the website of the Financial Advisors (www.efghermesksa.com) and (www.alahlicapital.com).

Read the full Prospectus

Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO

Further updates regarding this IPO will be provided as more information becomes available.

- Reporting by Zaid, Sahm News team