Retail subscription to 2.14 mln shares of Morabaha Marina IPO starts today

Logo of Morabaha Marina Financing Co.

Retail investors will start today, May 28, subscription to about 2.14 million shares of Morabaha Marina Financing Co. (MMFC), or 10% of the total offered shares, at SAR 14.60 each, as set by the book-building process. 

The subscription process for the retail tranche will run for two days until May 29. 

The Capital Market Authority (CMA) approved on Dec. 26, 2022, the company's request to float 21.4 million shares in an initial public offering (IPO), representing 30% of its SAR 714.29 million capital, after a capital top-up. The shares on offer represented nearly 42.86% of the company’s SAR 500 million capital before this hike.

The company’s institutional offering, which ended last week, was 401% covered. 

The IPOs of Morabaha Marina and Mawarid Manpower Co., which will also run today, are the first on Tadawul this year.

Last year, the main market witnessed 18 IPOs, namely, East Pipes Integrated Company for Industry , Scientific & Medical Equipment House Co., Elm Co. , Al-Dawaa Medical Services Co. , Al Masane Al Kobra Mining Co. , Nahdi Medical Co. , Saudi Home Loans Co. , Retal Urban Development Co., Alamar Foods Co. , Naqi Water Co. , Arabian Drilling Co., Power and Utility Company for Jubail and Yanbu (MARAFIQ), Perfect Presentation for Commercial Services Co. (2P), Americana Restaurants International Plc (Americana Restaurants) , Riyadh Cables Group Co., AlSaif Stores for Development & Investment Co.'s (Alsaif Gallery) and Saudi Aramco Base Oil Co. (Luberef), in addition to Alinma Hospitality REIT Fund.

Company Profile 

Established in 2012 as a limited liability company, Morabaha Marina was transformed into a closed joint-stock company in 2014.

The company is a pioneering Shariah-compliant financing platform offering a wide range of services to individuals as well as small- and medium-sized enterprises (SMEs).

In its prospectus, Morabaha Marina noted that it provides financing solutions through Tawarruq, Ijarah and Murabaha products for individuals and SMEs. 

The company implements financing through a network of 16 branches (in addition to its headquarters in Riyadh) located in 13 major and medium-sized cities in the Kingdom, in addition to the following sub-branches:

- Riyad Bank branches that include nine employees of the company.

- Saudi Post centers that provide training for employees to handle applications, which are eight main centers.

The company is also developing its digital channels to offer financing solutions through its website and smartphone application.

Subsidiary:

Morabaha Marina has one subsidiary, Digital Payments Company for FinTech (Loop). The company directly owns 80% of its subsidiary, and the table below shows the details: 

*As of the date of the prospectus, none of the company’s current shareholders hold any indirect ownership stakes.

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