Saudi Arabia’s Morabaha Financing set to raise $83.4m in IPO

Saudi Arabia’s Morabaha Financing set to raise $83.4m in IPO

Saudi Arabia’s Morabaha Marina Financing Company has started taking investor orders for its initial public offering (IPO) as the financing firm aims to raise as much as $83.4m (SAR 312.9m). Morabaha Financing is offering 21,428,572 shares, equivalent to 30 per cent of the company’s paid-up capital and the company set the price range for its offering at SAR 13 to SAR 14.6 per share. The company plans to announce the final offer price on May 21 at the end of the institutional book-building period. The institutional bookbuilding period commenced on May 14 and will end on May 18 while subscriptions for individual investors will be open from May 28 to May 29. However, Morabaha Financing did not disclose an expected trading date. The company intends to use the net proceeds to strengthen its capital base to support future growth in its business activities by generating additional capacity to provide financing to customers. Founded in 2012, the independent non-bank finance institution offers Shariah-compliant financial services to individuals and small and medium-sized enterprises in Saudi Arabia. Albilad Investment is acting as the sole financial adviser, book-runner, lead manager and underwriter of the offering. The Middle East IPO market has stood out as