Saudi Arabia's Premier Online Beauty Retailer Nice One To Launch IPO On Tadawul

Saudi Arabia's premier online beauty retailer, Nice One, is preparing to make its debut on the Saudi Exchange's Main Market (Tadawul), with plans to offer 34.65 million shares, equating to 30% of its total share capital.

This move involves the sale of both existing shares, totaling 25.24% or 29.15 million shares, and new shares, which make up 4.76% or 5.5 million shares. The funds raised from this offering are earmarked for various strategic initiatives including bolstering working capital, developing and promoting the company's proprietary brands, enhancing logistical operations, and pursuing broader corporate goals.

Nice One, established in 2017 by Omar AlOlayan and Abdulrahman AlOlayan, has quickly ascended to the forefront of the beauty e-commerce sector in Saudi Arabia. Offering an extensive range of over 28,000 products spanning cosmetics, body care, fragrances, and nutritional supplements, Nice One boasts a comprehensive portfolio that includes more than 1,200 international and local brands. This diverse product selection has solidified the platform's position as a leading destination for beauty and personal care products online.

With headquarters in Riyadh, Nice One has shown impressive financial performance, reporting a revenue of SAR 782.4 million ($208.6 million) for the year 2023, alongside a net income of SAR 32.6 million ($8.7 million). The company's financial health continued to demonstrate robust growth into the first quarter of 2024, with revenues reaching SAR 250.1 million ($66.7 million), a significant increase of 61.2% compared to the same period the previous year.

Omar Alolayan, the CEO and Co-founder of Nice One, expressed his enthusiasm about the upcoming IPO, seeing it as a pivotal moment in the company's history. "This IPO marks a significant milestone in Nice One's journey. Since founding the company in 2017, we have transformed from a startup into the largest e-commerce platform for beauty and personal care in Saudi Arabia."

As part of the IPO process, EFG Hermes KSA and SNB Capital have been chosen to serve as joint financial advisors, bookrunners, and underwriters. This collaboration underscores the strategic importance of the offering and the confidence in the company's growth trajectory.

The founders, Omar and Abdulrahman AlOlayan, who together hold a majority stake of over 74% in Nice One, will be selling a portion of their shares as part of the IPO. This decision underscores their commitment to the company's long-term vision and their confidence in its continued success on a larger scale.