Kaylin Gregg
In an impressive financial move, Nice One—Saudi Arabia’s leading beauty and personal care ecommerce platform—is capturing headlines as it embarks on its initial public offering with astounding success. The platform aims to gather $322 million through this financial venture. The retail tranche of its IPO has been met with remarkable demand, oversubscribed 7.9 times, with subscriptions amounting to a staggering SAR908 million ($242 million).
The orchestrators behind this financial spectacle, SNB Capital Company, revealed the enthusiastic participation in the two-day subscription push. Around 3.47 million shares were snapped up by eager investors, making up 10% of the available shares, priced at SAR35 each. These investors are assured of receiving a minimum of eight shares, with the remainder being allocated proportionately based on demand.
The buzz doesn’t end there. The preceding institutional subscription period broke records, being 139.4 times oversubscribed, with orders amassing an astronomical SAR169 billion ($45 billion). Nice One’s popularity is further underlined by its staggering customer base of 4 million, and its sales soar largely through their successful app platform, contributing to an impressive 95% of revenues.
The company’s report for Q1 this year delivered impressive figures with a 61% revenue hike compared to the previous year, reaching SAR250 million. The IPO landscape in Saudi Arabia remains buoyant, with a total of 48 offerings across the GCC, 38 of which were from Saudi alone, collectively amassing investments of $12.1 billion.
Why Nice One’s IPO Success is Revolutionizing Saudi Arabia’s E-commerce Market
In a remarkable development in the Middle East’s e-commerce sector, Nice One, a prominent name in beauty and personal care in Saudi Arabia, is making waves with its highly successful initial public offering (IPO). The platform has set an ambitious goal to raise $322 million in this venture, a move that’s garnering significant market attention.
The retail segment of Nice One’s IPO has been met with overwhelming demand, boasting a subscription rate that is 7.9 times oversubscribed. This fervor translated to a total of SAR908 million ($242 million) in subscriptions. The keen interest is a testament to the company’s strong market position and growth potential.
The IPO, managed by SNB Capital Company, witnessed an enthusiastic response during its two-day subscription period. An impressive 3.47 million shares were allocated to retail investors, representing 10% of the total shares at a price of SAR35 each. These investors were assured a minimum allocation of eight shares, with additional shares distributed based on demand.
A deeper look into the institutional subscription period reveals even more staggering figures. The period saw subscriptions exceeding expectations at 139.4 times oversubscribed, with the total order volume reaching an astronomical SAR169 billion ($45 billion). This level of interest underscores Nice One’s robust market positioning and the strategic appeal it holds for institutional investors.
One of the driving forces behind this interest is Nice One’s expansive customer base of 4 million and the significant contribution of their mobile app to total sales—an impressive 95%. This focus on digital channels highlights their innovative approach and positions them as leaders in the digital retail landscape.
Financially, the company reported an impressive 61% increase in revenue for Q1 compared to the same period last year, bringing in SAR250 million. These financial metrics affirm Nice One’s growth trajectory and market viability, further fueling investor confidence.
The IPO landscape in Saudi Arabia remains buoyant, with 48 offerings reported in the GCC region, 38 of which originated from Saudi Arabia, collectively raising $12.1 billion in investments. This vibrant environment reflects a broader trend of growth and investor interest in the region.
As Nice One continues to capture market share and drive innovations in e-commerce, its IPO success not only cements its status as a key player in the region but also signals a promising future for Saudi Arabia’s digital economy. For more about the digital transformation in the region’s e-commerce scene, visit SNB Capital.
