Nice One's IPO Sets a New Benchmark in Saudi Arabia
Deal News | Jan 30, 2025 | Zawya
Nice One, a notable player in the Saudi Arabian beauty and e-commerce sector, has made a remarkable debut on the capital markets with its IPO raising $320 million. The share price witnessed a significant surge of 30% on the first trading day, which reflects the investors' confidence in the beauty and e-commerce domain within the region. The IPO is perceived as a potential catalyst for further mergers and acquisitions within these sectors, especially given the favorable economic conditions and the growing propensity for online shopping in Saudi Arabia. As Saudis increasingly invest in luxury and high-quality beauty products with a substantial portion of their shopping occurring online, companies such as Huda Beauty are also exploring strategic moves, including potential sales of their business segments. Increasing digitalization and tech savviness in the region are making it attractive for businesses like Noon.com to further expand with the consideration of their own IPOs in the future. The legal counsel, Baker McKenzie, sees an optimistic outlook for capital markets, suggesting that such IPOs could be a viable means for businesses to secure funds for growth initiatives.
Sectors
- Beauty
- E-commerce
- Retail
Geography
- Saudi Arabia – The article is centered around the IPO activities in Saudi Arabia and the growing market potential in the beauty and e-commerce sectors within the region.
- GCC – The article discusses investment and IPO activities in the GCC region, given the collective market dynamics influencing beauty and e-commerce.
Industry
- Beauty – The article discusses the IPO of Nice One, a company operating in the beauty sector, which is experiencing rapid growth due to a young population and high luxury spending in Saudi Arabia.
- E-commerce – Nice One operates as an e-commerce platform and its IPO success highlights the increasing investor appetite within this industry, alongside growing digital infrastructure.
- Retail – The article outlines the potential growth and investment activity in the broader retail sector within Saudi Arabia, with a focus on the digital transformation driven by e-commerce.
Financials
- $320 million – The amount raised by Nice One during its IPO.
- 35 riyals ($9.33) per unit – The initial share pricing of Nice One during its IPO.
- SAR 55.70 – The closing share price of Nice One after the initial weeks of trading.
- SAR 1,568 – The average beauty spend per capita in the Saudi BPC market in 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nice One | Target Company | Company | A Saudi Arabian unicorn company in the beauty and e-commerce space that recently concluded a successful IPO. |
| Baker McKenzie | Legal Advisor | Company | The law firm acting as counsel for Nice One on its IPO. |
| SNB Capital Research | Research Analyst | Company | A Saudi-based research firm that provided coverage and commentary on Nice One's market potential. |
| Noon.com | Other Company | Company | An e-commerce platform potentially considering its own IPO, indicating the momentum in the digital marketplace in the region. |
| Huda Beauty | Other Company | Company | A Dubai-based beauty company exploring strategic sales in its fast-growing perfume business. |
| Saudi Public Investment Fund (PIF) | Backer | Government | Backed Noon.com financially and remains an influential entity in regional investment activities. |
| Vijay Valecha | Analyst | People | Chief Investment Officer at Century Financial, who provided insights into the Saudi beauty and e-commerce market. |
| Nadine Nassar | Legal Counsel | People | Counsel at Baker McKenzie, Saudi Arabia, providing legal insights on the potential of the beauty and e-commerce sectors in the region. |
| Mohamed Alabbar | Chairman | People | Chairman of Emaar Properties and influential figure in the development and potential IPO of Noon.com. |