Nice One Beauty Digital Marketing Co., an online cosmetics retailer, experienced a remarkable 30% surge in its Riyadh Stock Exchange (Tadawul) debut on Wednesday, reaching a high of 45.5 riyals ($12.1) per share. This impressive initial public offering (IPO), raising $320 million, further solidifies the current strength of the Saudi Arabian IPO market.
The successful listing, pricing its shares at 35 riyals, resulted in a valuation exceeding 4 billion riyals for the company, with a 30% stake offered to the public. This positive performance follows similar successes in recent Saudi IPOs, including Almoosa Health Co., United International Holding Co., and Tamkeen Human Resources Co., all demonstrating robust investor confidence.
In stark contrast, major IPOs in neighboring markets like the United Arab Emirates and Oman, featuring companies such as Talabat Holding Plc, Lulu Retail Holdings Plc, and OQ Exploration & Production SAOG, have encountered less enthusiastic receptions. This divergence highlights the current dynamism of the Saudi market. The strong performance reinforces Saudi Arabia’s attractiveness as a destination for businesses seeking capital.
The Middle Eastern beauty sector is experiencing heightened activity, with potential IPOs anticipated. Dubai-based Huda Beauty is reportedly considering selling its rapidly growing perfume business. Arabian Oud, a renowned perfume retailer, has also engaged banks for a prospective share sale in Saudi Arabia. These developments suggest a promising pipeline of future offerings in the beauty and fragrance segments.
EFG Hermes and SNB Capital acted as joint financial advisors for Nice One Beauty’s IPO, leveraging their expertise to navigate the complexities of the offering and contribute to its successful outcome.
The success of the Nice One Beauty IPO indicates a robust Saudi market, contrasting with the muted performance of recent listings in neighboring countries. The vibrant beauty sector in the Middle East further amplifies the positive sentiment surrounding the IPO, suggesting a promising outlook for future listings in the region. This positive momentum sets the stage for continued growth and investor interest in the Saudi Arabian market.
