(Bloomberg) – Ejada Systems Inc. is considering an initial public offering in Riyadh at a valuation of up to $1.5 billion, an unusual listing for a Saudi technology services company.
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Goldman Sachs Group Inc. and Al Rajhi Capital have been hired to coordinate an initial public offering that could take place in the coming months, people familiar with the matter said, adding that the discussions are confidential. The person spoke on condition of anonymity.
Ejada is owned by Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets. The bank could sell at least 30% of the business, the people said.
The scale and timing of the offering has not yet been finalized. Representatives for Ejada and Goldman Sachs declined to comment, while Al Rajhi Capital did not respond to requests for comment.
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Riyadh has seen more than $15 billion worth of stock sales this year, most of which came from Saudi Aramco’s massive stock offering in July. This figure also includes a spate of public offerings that raised more than $3 billion.
Like some Gulf states, Saudi Arabia is seeking to diversify its stock exchange beyond the banks and industrial companies that have traditionally dominated it.
So far this year, Riyadh has hosted IPOs for a variety of companies, including a local hospital group, a human resources company and a perfume maker. Meanwhile, the Public Investment Fund plans to take the kingdom’s largest pharmaceutical procurement company public.
But public listings by high-tech companies are relatively rare. Among them is Lasan Information Technology, whose $224 million IPO this year brought in orders worth $29 billion. The stock soared on its debut in Riyadh, rising 70% from its public offering price.
Buy now, pay later company Tabby is also considering a plan to go public.
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