IPO Monitor | Tas’heel’s Parent Company, UIHC, Gears Up for Saudi IPO – Institutional Subscription Starts Monday
Tadawul All Shares Index TASI.SA | 11268.38 | -0.07% |
TASHEEL 4083.SA | 127.90 | +0.71% |
UIHC IPO Overview
United International Holding Company (UIHC), the parent company of United Company for Financial Services (Tas’heel) and Procco Financial Services W.L.L. (Procco), plans to launch an Initial Public Offering (IPO) and list its shares on the Saudi Exchange’s Main Market. The company issued the IPO prospectus on October 20.
UIHC is a leading provider of Sharia-compliant consumer finance services in Saudi Arabia.
On June 26, 2024, the Capital Market Authority (CMA) approved UIHC’s IPO, which will offer 7,500,000 ordinary shares, representing 30% of the company’s capital.
Company Name: United International Holding Company
Market: TASI (Tadawul)
Core Activities: A provider of multi-product and multi-category Sharia-compliant digital financial services in Saudi Arabia, leveraging innovative technology and strategic partnerships to deliver tailored consumer finance solutions through Tas’heel.
Capital: SAR 250 million
Total Shares: 25 million
Par Value: SAR 10 per share
IPO Details
| Category | Details |
|---|---|
| Issue Percentage | 30% |
| Number of Offered Shares | 7.5 million |
| Qualified Subscribers | Participating institutions & Retail investors |
| Minimum Number of Offer Shares to be Applied for by Individual Investors | 10 shares |
| Maximum Number of Offer Shares to be Applied for by Individual Investors | 250,000 shares |
| Minimum Number of Offer Shares to be Applied for by Institutional Investors | 50,000 shares |
| Maximum Number of Offer Shares to be Applied for by Institutional Investors | 1.25 million shares |
Company Background
The Group is one of Saudi Arabia's leading providers of Sharia-compliant digital financial services, with a focus on delivering a wide range of consumer finance products through its subsidiary, Tas’heel. As one of the largest non-banking financial institutions (NBFI) in the Kingdom, Tas’heel has established itself as a key player in the sector, serving over 200,000 customers and partnering with more than 50 retailers and service providers.
Tas’heel’s product portfolio includes Tawarruq (cash loans), Murabaha (installment loans), Islamic credit cards, and Baseeta, an innovative payment solution.
The company’s competitive advantage lies in its fully integrated digital platform, which allows customers to easily apply for and obtain financing products, including via a dedicated wallet for financing purchases.
This streamlined process enhances its competitiveness in the market, especially when compared to traditional "buy now, pay later" (BNPL) solutions.
In addition to Tas’heel, the Group benefits from its subsidiary Procco, which provides vital back-office services such as data processing, collections, and telemarketing, enabling the Group to maintain efficient operations.
The Group's strategic focus on innovation, digital transformation, and strong risk management policies has allowed it to build a large, loyal customer base while expanding its market share within the NBFI sector.
Investor Groups
The subscription to the Offer Shares is divided into two tranches, catering to different categories of investors:
Tranche (A) - Participating Parties:
This tranche includes entities eligible to participate in the book building process as per the instructions issued by the Capital Market Authority (CMA). These parties include investment funds, qualified foreign companies and institutions, corporate investors from the GCC, and other foreign investors through swap agreements. A total of 7,500,000 ordinary Offer Shares, representing 100% of the total Offer Shares, will be initially allocated to these Participating Parties. However, if there is sufficient demand from Individual Investors, the Financial Advisor, in consultation with the Company, may reduce this allocation to a minimum of 6,750,000 Shares, which represents 90% of the total Offer Shares. The final number of shares allocated to Participating Parties will be determined by the Financial Advisor in coordination with the Issuer.
Tranche (B) - Individual Investors:
This tranche is open to Saudi individuals, including Saudi female divorcees or widows with minor children from a non-Saudi marriage, as well as non-Saudi residents in the Kingdom and GCC nationals, all of whom must have an investment account and an active portfolio with one of the Receiving Agents. A maximum of 750,000 ordinary Offer Shares, representing 10% of the total Offer Shares, is allocated to Individual Investors. In cases where Individual Investors do not subscribe to all allocated Offer Shares, the Financial Advisor and Lead Manager reserve the right to proportionally reduce the number of shares for this tranche based on the actual subscriptions received.
Substantial Shareholders of the Company Pre- and Post Offering
Pre-Offering | Post-Offering | |||||||
|---|---|---|---|---|---|---|---|---|
| Shareholder | No. of Shares | Nominal Value Per Share (SAR) | Direct Shareholding Percentage | Indirect Shareholding Percentage | No. of Shares | Nominal Value Per Share (SAR) | Direct Shareholding Percentage | Indirect Shareholding Percentage |
| eXtra | 24,750,000 | 247,500,000 | 99% | 1% | 17,250,000 | 172,500,000 | 69% | 1% |
| eXtra Bahrain* | 250,000 | 2,500,000 | 1% | - | 250,000 | 2,500,000 | 1% | - |
| Public | - | - | - | - | 7,500,000 | 75,000,000 | 30% | - |
| Total | 25,000,000 | 250,000,000 | 100% | - | 25,000,000 | 250,000,000 | 100% | - |
Source: The Company
Note: eXtra owns 100% of the shares of eXtra Bahrain. Accordingly, eXtra Bahrain will be subject to the statutory Lock-up Period applicable to the Substantial Shareholder.
Expected Offering Timetable
| Event | Date |
|---|---|
| Bidding and Book-Building Period for Participating Parties | A period of eight (8) days, commencing on Monday, 25/04/1446H (corresponding to 28/10/2024G) until the end of Monday, 02/05/1446H (corresponding to 04/11/2024G). |
| Deadline for submission of Application Forms for Participating Parties based on the number of Shares provisionally allocated to each of them | Thursday, 12/05/1446H (corresponding to 10/11/2024G). |
| Deadline for payment of the subscription monies for Participating Parties based on the number of Shares provisionally allocated to each of them | Monday, 16/05/1446H (corresponding to 18/11/2024G). |
| Subscription Period for Individual Investors | A period of two (2) days, commencing on Tuesday, 17/05/1446H (corresponding to 19/11/2024G) until the end of Sunday, 18/05/1446H (corresponding to 20/11/2024G). |
| Deadline for submission of Application Forms and payment of subscription monies by Individual Investors | Wednesday, 18/05/1446H (corresponding to 20/11/2024G). |
| Announcement of the final allocation of the Offer Shares | No later than Monday, 23/05/1446H (corresponding to 25/11/2024G). |
| Refund of excess subscription monies (if any) | No later than Thursday, 26/05/1446H (corresponding to 28/11/2024G). |
| Expected commencement date of Share trading on the Stock Exchange | Trading of the Company’s Shares on the Stock Exchange is expected to commence after fulfilment of all requirements and completion of all relevant legal procedures. Commencement of Share trading will be announced on Tadawul’s website (www.saudiexchange.sa). |
Note: The above timetable and dates are approximate. Actual dates will be communicated through announcements on the websites of Tadawul (www.saudiexchange.sa), the Financial Advisor (www.hsbcsaudi.com), and the Company (unitedholding.com.sa).
Read the full Prospectus
Further updates regarding this IPO will be provided as more information becomes available.
Read a step-by-step guide of subscribing IPO on Sahm
Understanding the Saudi IPO Phases: Key Periods Every Investor Should Know
- Reporting by Zaid, Sahm News team