Saudi beauty e-commerce giant Nice One has announced the successful pricing of its initial public offering (IPO) at SAR 35 per share, the top end of its range. The IPO has attracted overwhelming interest, with institutional investors placing orders exceeding SAR 169 billion ($45 billion), representing an oversubscription of 139.4 times.
This IPO positions Nice One with a market capitalization of over SAR 4 billion ($1.06 billion) and marks a major milestone for the beauty and personal care e-commerce sector in Saudi Arabia.
Details of the IPO
Nice One is set to raise $322 million by offering 34.65 million shares, equivalent to 30% of its share capital. This includes:
- 29.15 million existing shares being sold by current shareholders.
- 5.5 million new shares issued as part of a capital increase.
The retail subscription period is scheduled to run from December 24 to December 25, with 10% of the shares allocated to individual investors.
The shares will be listed on Saudi Exchange’s Main Market (Tadawul) upon completion of listing formalities. EFG Hermes KSA and SNB Capital are serving as joint financial advisors, bookrunners, and underwriters for the offering.
Nice One’s Success Story
Founded in 2017 by Omar and Abdulrahman AlOlayan, Nice One has quickly become a leading name in the Saudi beauty e-commerce industry. The platform specializes in cosmetics, personal care products, and fragrances, offering a wide range of products to a growing customer base.
The company reported impressive financial results for the first nine months of 2024:
- Revenue: $186 million
- Net profit: $17.6 million
These figures highlight Nice One’s strong performance and robust market presence, making it an attractive investment opportunity.
A Booming Beauty E-Commerce Sector
Nice One’s IPO success reflects the rapid growth of the beauty and personal care market in Saudi Arabia, driven by increasing e-commerce adoption and shifting consumer preferences. The company’s ability to capitalize on these trends has positioned it as a leader in the sector, with significant potential for future growth.
The IPO proceeds will help fuel further expansion and innovation, solidifying Nice One’s role as a major player in the region.
Institutional and Retail Investor Interest
The extraordinary demand from institutional investors highlights strong confidence in Nice One’s business model and growth prospects. Retail investors also have the opportunity to participate in the offering, with 10% of shares reserved for individual subscriptions.
Looking Ahead
With its IPO marking a significant milestone, Nice One is poised for continued growth and innovation. The funds raised will enable the company to strengthen its operations, expand its product offerings, and solidify its market leadership in the competitive beauty e-commerce space.
As Nice One prepares to list on Tadawul, its journey underscores the immense potential of Saudi Arabia’s e-commerce and beauty industries, furthering the Kingdom’s vision for economic diversification and growth.