Baker McKenzie advises on United International Holding Company’s Tadawul IPO

Baker McKenzie has represented the joint-bookrunners and joint-underwriters, HSBC Saudi Arabia and EFG Hermes KSA, in the Regulation S Initial Public Offering (IPO) of United International Holding Company (“UIHC”) on the main market of the Saudi Exchange (Tadawul).

UIHC, a subsidiary of United Electronics Company (eXtra), is one of the largest providers of Sharia-compliant consumer finance services in Saudi Arabia. It is the parent company of two subsidiaries: Tas’heel Finance, an Islamic consumer finance operator, and Procco Financial Services, a captive processing and outsourcing services company.

The Capital Market Authority approved UIHC’s application to list its shares on Tadawul and the public offering of 7,500,000 ordinary shares, representing 30% of its issued share capital upon completion of the offering. The final offer price for the offering has been set at SAR 132 per share, which is at the top end of the previously announced price range for the IPO.

The institutional book-building process generated an impressive order book of SAR 131 billion (USD 35 billion), resulting in a subscription coverage of approximately 132 times. UIHC’s shares (stock code: 4083) commenced trading on 3 December 2024.

Commenting on the transaction, Nadine Nassar, Of Counsel at Baker McKenzie in Saudi Arabia, and Charles Farnsworth, Senior Counsel at Baker McKenzie in London stated: “We are delighted to have supported HSBC Saudi Arabia and EFG Hermes KSA in this landmark IPO. Their expertise and commitment were instrumental in achieving such a successful outcome.

“We are excited to continue leveraging our robust capital markets expertise to assist our clients with their future transactions,” they added.

This marks the seventh IPO that Baker McKenzie has advised on in 2024, underscoring our commitment to supporting major market transactions and our expertise in navigating cross-border deals.