Walid Al-Ghamlas, managing director and member of the Board of Directors of the “Munable Murabaha Finance” Company, said that the company is in the process of issuing new shares and offering them for public subscription in the Saudi stock market, with the aim of increasing the capital.
Al-Ghamlas added, in an interview with Al-Arabiya, that the company’s financing sources include capital provided by investors, in addition to bank financing, bonds, and financing from the Central Bank.
He pointed out that the company operates in the non-banking banking sector, and obtained its license from the Central Bank in 2015, and its current capital is 500 million riyals.
Flexible Finance announced its intention for an initial public offering and listing of its shares in the Saudi financial market, where 30% of the company will be offered to institutional investors, with the possibility of reducing the shares allocated to institutions and allocating 10% of the total offering shares to individual investors.
The offering is an initial issuance, and the company intends to use the entire net proceeds of the offering to enhance the capital base to support future growth in financing activities by providing additional financing capacity that allows the company to provide financing to clients.
Al-Ghamlas revealed that the offering will help enhance the transparency and governance of the company, which will support the deepening of existing partnerships and the creation of new partnerships, which will help achieve an economic return for current and potential shareholders.
Al-Ghamlas stated that the biggest motivator for the shareholder to enter the “Merna Finance” subscription is the economic situation in Saudi Arabia, in addition to the activity of the non-bank financing market in the Kingdom, which enjoys good growth levels.
The company offers a wide range of innovative and flexible financing solutions that are compatible with the principles of Islamic law for individual customers and small and medium enterprises. The company provides its solutions through leasing, tawarruq and murabaha products.
It provides financing services through a network of 16 branches (in addition to the headquarters in Riyadh) located in 13 cities in the Kingdom. In addition, the company relies on various channels through the distribution network of its partners, particularly “Saudi Post” and “Riyad Bank”, and through the Small and Medium Enterprises Financing Portal of the General Authority for Small and Medium Enterprises (Monshaat).
The company is also developing its digital channels to provide its financing solutions through the company’s website and its smartphone application.
The company also owns 80% of the digital payments company for financial technology “Loop”, which is an electronic money company licensed by the Central Bank of Saudi Arabia, to provide payment services and electronic wallets.
Regarding the company’s dividend policy, Al-Ghamlas said that the company has been distributing shares in the past 5 years to support the company’s capital base, and it is hoped that the company will complete this policy according to the performance recorded in the past years.
