Morabaha Marina Financing Company Successfully Lists On The Main Market Of The Saudi Exchange

Morabaha Marina Financing Company (“MRNA” or the “Company”), a fully independent non-bank finance institution (“NBFI”), commenced trading on the Main Market of the Saudi Exchange (“Tadawul”) following the successful completion of its Initial Public Offering (the “IPO” or the “Offering”). MRNA trades under the ticker symbol “4082”.

Raising gross proceeds of SAR 312.85 million the IPO was oversubscribed in excess of 456%, receiving strong interest from individual and institutional investors. Based on the Final Offer Price of SAR 14.60 per share, the Company’s market capitalization at the time of listing is SAR 1.04 billion.

Commenting on the listing, Waleed Al-Ghumlas, Managing Director of MRNA, said: “Our IPO marks a key milestone in our journey and a major step towards cementing our position as a leading player in the Saudi non-bank financing sector. We are pleased to welcome new shareholders to participate in our growth story, as we remain committed to investing in our future and leveraging our strong track record to meet the changing needs of our customers. As a listed company, we look forward to building on our value creation strategy to drive expansion and growth, while generating long-term value for our shareholders.

At MRNA, we are proud that our business is enabling the Kingdom’s economic development in line with Vision 2030, by unlocking new digital financing and payment opportunities for a growing number of SMEs and consumers. Our roadmap for the future will continue to revolve around generating meaningful positive change in the Kingdom’s financial ecosystem and empowering local entrepreneurs and consumers through our fully integrated and diversified solutions.”

Representing 30% of MRNA’s issued share capital post capital increase, the Offering is a primary issuance, and the Company will use the net proceeds to strengthen its capital base to support future growth in its business activities by generating additional capacity to provide financing to customers.

Company Overview

• MRNA is a leading independent non-bank finance institution in the Kingdom of Saudi Arabia (the “Kingdom”), offering a wide range of innovative and flexible Shari’ah-compliant financing solutions to both individuals and small and medium-sized enterprises (“SMEs”). The Company offers its solutions through Ijarah, Tawarruq and Murabaha products.
• Established in 2012G, MRNA offers finance solutions through its network of 16 branches located in 13 cities in the Kingdom, in addition to its head office in Riyadh. The Company also relies on a multi-channel distribution model through a network of partners, including Saudi Post and Riyad Bank, as well as the SME funding portal developed by the General Authority for Small and Medium Enterprises (Monsha’at).
• The Company is developing advanced digital channels to enable the full credit cycle through its website and mobile application.
• The Company also owns 80% of Digital Payments Company for FinTech (“Loop”), a major electronic money institution licensed by the Saudi Central Bank to offer payment and e-wallet services.

Offering Details

Albilad Investment Company was appointed by the Company as lead manager, sole financial advisor (the “Financial Advisor”), underwriter and bookrunner (the “Bookrunner”).

The Offering, for which the required CMA and Saudi Exchange approvals were obtained, consists of the following:

• MRNA issued and offered 21,428,572 Offer Shares, representing 30% of the Company’s issued share capital post capital increase.
• The MRNA shares are listed on the Main Market of the Saudi Exchange following the completion of the offering and listing formalities with both the CMA and the Saudi Exchange.
• The Offering is a primary issuance, and the Company intends to use the net proceeds to strengthen its capital base to support future growth in its business activities by generating additional capacity to provide financing to customers.
• All the Offer Shares were offered to institutional investors, with a clawback of up to 10% for individual investors in the Kingdom, which was determined at the discretion of the Bookrunner.