Saudi Arabia’s Nice One Beauty Digital Marketing Co. witnessed a remarkable debut following its $320 million initial public offering in Riyadh, marking yet another successful listing in Saudi Arabia. On Wednesday, shares of the online cosmetics retailer soared to as high as SAR45.5 ($12.1) each, reflecting a 30 percent increase—the maximum allowed—over the offer price of SAR35 per share.
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The company sold a 30 percent equity stake at a price that suggested a valuation exceeding SAR4 billion. Similarly, hospital operator Almoosa Health Co. enjoyed a strong debut on the Saudi stock exchange, rising by as much as 30 percent on Tuesday before ultimately closing 15 percent higher. Other companies, such as United International Holding Co. and Tamkeen Human Resources Co., also achieved strong performances in their listings late last year.
The impressive results of Saudi listings stand in stark contrast to the tepid starts of notable IPOs in the United Arab Emirates, including Talabat Holding Plc and Lulu Retail Holdings Plc, as well as Oman’s OQ Exploration & Production SAOG.
Activity in the beauty sector is poised for growth in the Middle East, with Dubai-based cosmetics brand Huda Beauty reportedly exploring the sale of its rapidly expanding perfume division, according to Bloomberg. Additionally, Arabian Oud, another prominent perfume retailer, has engaged banks to potentially facilitate a share sale in Saudi Arabia, as reported by Bloomberg News.
EFG Hermes and SNB Capital served as joint financial advisers for Nice One’s IPO.
