Massive demand for Saudi online beauty retailer Nice One's initial public offering, with orders valued at a staggering $45 billion following its $322 million floatation.
In the bustling world of Saudi Arabia's tech industry, the online beauty retailer, Nice One, has made waves with its initial public offering (IPO). The company, founded in 2017, specialises in selling cosmetics, personal care products, and fragrances, has set the final price for its IPO at SAR 35 per share.
The IPO offering period runs from December 24 to December 25, 2021. This move comes after a successful institutional book-building process that attracted orders exceeding SAR 169 billion ($45 billion), more than 139 times the number of shares offered.
The offering includes the sale of 29.15 million existing shares and the issuance of 5.5 million new shares through a capital increase. In total, 34.65 million shares, representing 30% of its share capital, will be offered to the public. This move aims to raise approximately SAR 1.16 billion ($322 million) for Nice One.
Interestingly, 10% of the offered shares in Nice One's IPO are allocated to individual investors, providing an opportunity for a wider audience to invest in the growing beauty e-commerce platform.
Recent financial data for Nice One shows a slight increase in revenues but a decline in net profit compared to the previous year. For Q2 2021, Nice One reported revenues of SAR 4.6 million, a slight increase from SAR 4.5 million in Q2 2020, but net income declined by 36% year-over-year to SAR 1.58 million.
Despite this mixed financial performance, Nice One's IPO is expected to value the company at over SAR 4 billion ($1.06 billion) after the offering. The final price is at the top end of the previously announced range, indicating strong investor confidence in the company's future growth prospects.
Further details on Nice One's expansion plans specific to the IPO were not available in the provided search results. However, the company has reported impressive growth figures in the past, with revenues of $186 million and a net profit of $17.6 million for the first nine months of 2020.
As the beauty e-commerce landscape continues to evolve, the successful launch of Nice One's IPO is a testament to the growing potential of the sector in Saudi Arabia and beyond.
The IPO of online beauty retailer, Nice One, in Saudi Arabia's tech industry is anticipated to raise approximately SAR 1.16 billion ($322 million), demonstrating the intersection of finance, business, and technology in the country. Despite a decline in net profit for Q2 2021 compared to the previous year, individual investors have an opportunity to invest in Nice One, signifying the growing potential of the beauty e-commerce sector.
