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Driving Growth Through Robust Financial and Operational Foundations

A leading innovator in consumer finance in Saudi Arabia

Overview

United International Holding Company

United International Holding Company (UIHC), a subsidiary of United Electronics Company (eXtra), is one of the largest providers of Sharia-compliant consumer finance services in Saudi Arabia.

UIHC operates in 28 cities and offers a variety of consumer finance solutions through its two subsidiaries: Tas'heel Finance, an Islamic consumer finance operator, and Procco Financial Services, a captive processing and outsourcing services company.

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Key Highlights

Robust operational and financial performance

Investment in Islamic financing contracts (as of H1 2024G)

SARbillion

Locations in 28 cities across the Kingdom

+

Customers (2023G)

+k

Net profit CAGR (FY 2020G-2023G)

%

Net income from Islamic financing (FY 2023G)

SARmillion

RoAE (FY 2023G)

+%
Message from Leadership

Vice Chairman Message

This offering marks a pivotal milestone in the company's growth journey, empowering it to leverage the Kingdom's evolving economic landscape and the rising demand for consumer finance products. With a robust track record of financial excellence and consistent growth, our ambitious vision extends beyond business goals to drive positive market impact through innovative Sharia-compliant financial solutions.

Mohammed Galal

Vice Chairman

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Mohammed Galal
SakhrAlMulhem

CEO Message

We are committed to supporting the goals of the Financial Sector Development Program under Vision 2030. Moving forward, we will harness our technological strengths and strategic partnerships to further enhance our product and service offerings. Our unwavering commitment to operational excellence and strong client relationships positions us to deliver exceptional value to our shareholders and stakeholders alike.

Sakhr Al Mulhem

Chief Executive Officer

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IPO

A transformative chapter in the company’s evolution

UIHC intends to proceed with an initial public offering and the listing of its shares on the Main Market of the Saudi Exchange.

The Offer Shares represent 30% of the Company’s issued share capital, or 7,500,000 ordinary shares.

The Offering proceeds after deducting IPO-related expenses will be distributed to eXtra, the Selling Shareholder in proportion to the number of Offer Shares to be sold by it in the Offering. The Company will not receive any portion of the Offering proceeds.

7,500,000

Offer Shares

Offer Shares

30%

of the Company’s issued share capital

of the Company’s issued share capital

100%

Offer Shares will be allocated to institutional investors

Offer Shares will be allocated to institutional investors

10%

Offer Shares to be clawed back and offered to retail investors

Offer Shares to be clawed back and offered to retail investors

Investment Highlights

The Group boasts strong financial and operational foundations, with promising growth prospects, and aspires to take the lead in providing multi-product and multi-category digital financial services. It aims to be the largest provider of Sharia-compliant consumer finance products in the Kingdom.

Operating in a Promising Market and Focusing on Untapped Sectors with High Growth Potential
  • The consumer finance sector remains promising and untapped in the Kingdom, with the sector representing only 13% of the GDP (2023G), compared to 21.1%, 21.1% and 16.4% for the UAE, the USA and the global average, respectively.
  • Through its business since its establishment, the Company has been able to target categories of customers who face challenges in accessing traditional financing options, including resident expatriates, SME employees and low-income customers, thus enabling the Company to capture a high-growth market segment.
Extensive Brand Reach and Large Distribution Network
  • Through its subsidiary Tas'heel, the Group boasts a wide-reaching brand and can leverage eXtra's network of more than 48 stores in 28 cities across the Kingdom with a customer base estimated at 14 million customers (2022G).
  • Additionally, Tas'heel has an extensive presence across the Kingdom, with offices and services available at over 310 locations through its network of over 300 strategic partners.
Simple Terms and Procedures
  • Tas’heel stands alone in providing its customers with a package of personal financing solutions having the simplest terms and procedures with instant approvals. This supports the Company with more unique competitive elements within the non-banking finance services sector in the Saudi market.
  • The Company is also distinguished by having the fastest approval cycle and competitive expenses and fees, with the average approval duration for a single financing application taking approximately twenty minutes.
  • The Company also provides customers with instalment sale products compliant with the Sharia standards approved by Tas’heel’s Sharia Committee for the purchase of products ranging from SAR 2,000 to SAR 60,000.
Compliance with Islamic Sharia Principles
  • The Company provides Sharia-compliant solutions and services, where all the Company's products and agreements are approved by a Sharia committee and its products and agreements are structured in line with Sharia standards.
Revolutionary Technology with a Robust and Scalable Infrastructure
  • Tas'heel stands at the forefront of online consumer financial solutions in the Kingdom, driven by an unwavering commitment to innovation. It was the first NBFI in the Saudi market to offer an integrated digital process, with approximately 80% of all financing applications made entirely via the internet, by providing one of the fastest credit approval cycles in the market.
  • The Group leverages its internally developed innovative fintech platform that provides its customers with unique consumer financing offers. Self-service machines have been installed at more than 310 sites, with staff available at certain locations to assist customers who prefer face-to-face interaction when submitting applications.
  • The electronic channels of Tas’heel achieved an operating rate of nearly 97% during 2022G.
Strong and Sustainable Profitability
  • Tas’heel is one of the most profitable companies within the non-banking finance services sector in Saudi Arabia. The Group recorded profits during 2023G amounting to SAR 212 million, representing 44% of the total profits of the top consumer finance companies which account for more than 95% of the market size.
  • The return on average equity of the Company exceeded 27.2% in the same period and is the highest in comparison to major competitors within the non-banking finance services sector in the KSA.
  • Tas’heel’s commitment to continuous product innovation led to the launch of Baseeta in December 2023G, an innovative offering to meet latest consumer needs.
Globally Experienced Management Team
  • The Group's Management consists of a team of managers and administrators who have a unique combination of global expertise and exceptional skills with over 250 years of combined experience.
Highly Effective Risk Management
  • Through Tas’heel, the Group applies an integrated approach to managing current and potential risks, including any risks that may pose a material threat to its business model, performance or financial solvency, or that may prevent Tas’heel from achieving its strategic objectives.
  • Tas’heel uses a sophisticated risk management infrastructure to provide guarantee-free credit programmes to its customers while efficiently and competitively managing defaults.
Diverse and Stable Funding Sources and Optimal Leverage Ratio
  • The Group boasts a strong and stable funding position, coupled with an optimal exposure limit ratio, ensuring financial resilience and long-term sustainability. It has achieved consistent cash flows due to its strict collection policy.
  • Through Tas’heel, the Group benefits from a robust relationship with reputable financial institutions as a result of its track record and leadership in the sector, which enabled it to access diverse funding options. This diversified funding approach reduces the Group's dependence on any single financing source, reducing financing risks that it may face.
Our Team

The Leadership Team

Board of Directors

Fozan Al Fozan

Chairman

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Mohammed Galal

Vice Chairman

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Kubra Radi

Director

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Abdulrahman Al Issa

Director

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Abdullatif Al Fozan

Director

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Assaf Al Quraishi

Director

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Management Team

Sakhr Al Mulhem

Chief Executive Officer

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Ramy Askar

Finance Director

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Mohammad Farooqui

Chief Experience Officer

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Mujeeb Noman

Chief Commercial Officer

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Shahrukh Lali

Chief Risk Officer

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IPO Timeline

Transaction milestones

Intention to Float
20
October 2024
Price Range Announcement and Institutional Book-building
28
October 2024
Institutional Book-building ends
4
November 2024
Final Offer Price announcement
12
November 2024
Subscription Period for Individual Investors begins
19
November 2024
Subscription Period for Individual Investors ends
20
November 2024
Announcement of the final allocation of the Offer Shares
25
November 2024
Refund of excess subscription amounts (if any)
28
November 2024

How to subscribe

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FAQs

Key Questions

What is the transaction structure?

On 26 June 2024, the Capital Market Authority (“CMA”) approved the Company’s application for registering its share capital and offering 7,500,000 ordinary shares of the Company’s total capital (the “Offer Shares” and each as an “Offer Share”). The Offer Shares represent 30% of the Company’s issued share capital upon completion of the Offering.

How can I subscribe?

To subscribe to the IPO, you must submit your subscription request electronically through the websites and platforms of the Receiving Agents that offer this service, or through any other methods provided by the Receiving Agents.

For a complete list of Receiving Agents, please scroll down.

For additional details, the prospectus is available in the “Key Documents” section on this webpage. It is also recommended to discuss investment-related queries with a financial advisor.

Who is eligible to participate in the offering?

Subscription to the offer is available to: (1) Participating Parties: This tranche comprises the parties entitled to participate in the book-building process as specified under the Book-Building Instructions; and (2) Individual Subscribers: This tranche comprises Saudi Arabian nationals, in addition to any non-Saudi natural person who is resident in the Kingdom and any GCC natural person, provided they have an investment account and an active stock portfolio with one of the Receiving Entities. You may download the prospectus from the downloads section on this webpage for more details.

When will the final offer price be announced?

The Final Offer Price of the share will be set after the institutional book-building process is complete.

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Advisors & Receiving Banks

Advisors

Financial Advisor, Lead Manager, Bookrunner and Underwriter

Bookrunner and Underwriter

Receiving Banks