BrazilA tech landmark for Saudi Arabia as Jahez unveils IPO listing
A landmark listing: food delivery app Jahez is set to become the first homegrown technology startup to debut on the Saudi Exchange. Financial advisors have been called in to support and coordinate the initial public offering (IPO).
Riyadh-headquartered online food delivery platform Jahez has traced stellar growth since launching in 2016, having delivered more than 45 million orders – 20 million last year alone – and linked 2 million customers with 13,000 restaurants and 45,000 delivery partners across 47 Saudi cities.
Half a decade in, Jahez is looking to raise capital through a public listing, with ambitions of becoming “the most loved platform with the largest presence in the Middle East,” according to CEO Ghassab Al Mandeel. Financial advisors from HSBC have been named sole financial advisor and global coordinator for the listing, which is still subject to regulatory approvals.
The young, tech-powered firm will be listed on the Tadawul’s Noma market – a parallel channel with lower listing thresholds and versatile funding options for smaller businesses. Nomu was set up in 2017 to power cutting edge innovation in line with Saudi Arabia’s Vision 2030 economic diversification goals, and offers an indirect ticket into the main market based on performance.
Jahez is the latest beneficiary of this set up, with HSBC advisors working on pitching the firm’s debut and securing maximum value from the listing. The IPO team is currently in the process of appointing other advisors for support with strategic due diligence, valuation, taxation and legal structuring, among other key functions. Consultants are also helping the food company transition from a privately-held operation to a listed company.
Market opportunity
And the timing is no coincidence: online commerce has gained tremendous momentum and a vast consumer base since the pandemic last year. Saudi Arabia already has one of the highest mobile penetration rates in the world, which combines with a relatively immature online commerce landscape to give Jahez a sizeable market opportunity.
“We will continue to expand our platform to tap into new growth opportunities offered by rapid, technology-enabled changes in consumer behavior, both in Saudi Arabia and in the wider region,” said Al Mandeel, pointing to a range of new Jahez ventures in cutting edge fields such as quick commerce, last mile logistics and cloud kitchens.
“The creation of these new ventures will help ensure that we remain agile and continue to meet the needs of existing and new customers in the future, taking advantage of greater scale and strong network effects,” he concluded. The new listing will lay a strong monetary base for these ambitions.
