Saudi Arabia’s leading online food delivery platform, Jahez today announced the successful completion of its IPO and listing of its shares at the Saudi Exchange’s Parallel Market (Nomu), taking the market capitalization to $2.4 billion.
Ghassab Al Mandeel, Chief Executive Officer at Jahez International Company, commented “We are proud to announce that with this latest milestone in our journey, we are officially the first homegrown Saudi early stage company to list on the Saudi Exchange. We thank our investors for their strong interest and support, a testament to our financial and operational strength and future growth potential. With this achievement, we are poised to accelerate our strategy of focusing on four verticals, best practice corporate governance standards, and leverage supportive market dynamics in order to provide the best customer experience while delivering value for our esteemed shareholders.”
Faris AlGhannam, Deputy Chief Executive Officer at HSBC Saudi Arabia, commented “We are glad with the role we played in leading the first early stage company IPO in Saudi Arabia and the region, which differs in its preparation and offering process from the IPOs of other types of companies. This will set an important precedent that will enable early stage companies in the Kingdom to access capital markets for financing. On the other hand, it will also provide an opportunity to the broader investor base in the Saudi market to invest in such companies, which was not previously possible. The growth and development of the sector will also reinforce the leading role of the Saudi market in the region and globally, including attracting foreign investments, which was strongly present in this pioneering IPO.”
The offering generated high demand from institutional and individual investors alike, as the IPO was 38.8x and 5.9x oversubscribed, generating demand of SAR 59.8 billion and SAR 1.4 billion, respectively. The final offer price for the offering had been set at SAR 850 per share, implying a market capitalization of SAR 8.9 billion (USD 2.4 billion) at listing.
Jahez is a homegrown Saudi business that utilizes disruptive technology to connect over 1.3 million active users with its platform’s network that includes over 12,000 merchant branches and more than 34,000 delivery partners in 47 cities across Saudi Arabia as of 31 March 2021. The Group demonstrated tremendous growth since the launch of the Jahez platform in 2016 and captured a significant market share to become a leading delivery platform in the Kingdom. In almost 5 years since its launch, the orders delivered through Jahez exceeded 68 million, with 36 million orders delivered in the first 9 months of 2021 alone, totalling SAR3.2bn of Adjusted Gross Merchandise Value (Adjusted GMV) including VAT and delivery fees.
