Saudi beauty and care e-commerce platform announces share sale

Nice One Beauty Digital Marketing Company, a leading beauty and care e-commerce platform in Saudi Arabia, on Sunday announced its intention to proceed with an initial public offering (IPO) and the listing of its ordinary shares (“Shares”) on the main market of the Saudi Exchange (Tadawul).

On September 25, the Capital Market Authority (CMA) approved the company’s application for registering its share capital and the offering of 34,650,000 of ordinary shares, through the sale of 29,150,000 ordinary shares of the existing shares by the company’s existing shareholders on a pro-rata basis, and the issuance of 5,500,000 shares through a capital increase. The sale shares represent 25.24% and the new shares represent 4.76% of the company’s capital upon completion of the offering, totalling 30% of the issued share capital.

The IPO’s net proceeds will be distributed to selling shareholders on a pro-rata based on their shareholding in the sale shares, with the remaining proceeds to be distributed to the company to be used to finance working capital, develop and market its own brands and sales channels, enhance logistic and technical capabilities, and achieve its general business objectives.

The final offering price will be determined at the end of the book-building process. The offer shares will be listed and traded on the Saudi Exchange’s main market following the completion of the offering and listing formalities with both the CMA and the Saudi Exchange.

The company was established in 2017 as a startup e-commerce platform and has since scaled to become the largest online platform specializing in beauty and personal care in Saudi Arabia. Nice One offers a diverse range of beauty, skincare, haircare, fragrance and other personal care products, catering to millions of customers across the kingdom and boasts a broad catalog of over 28,000 products.

The company’s primary sales channel is the Nice One app, which accounted for 95% of sales in Q1 2024. Launched in 2017 alongside the e-commerce platform, the app has been downloaded over 8 million times and maintains a user rating of 4.6 on both the Apple App Store and Google Play Store.

Operating through a centralized distribution model, with all products distributed directly from its main warehouse in Riyadh through a combination of its own transportation fleet and third party delivery providers.

Abdularahman Al Olayan, CMO & Co-founder, said: “This event is a testament to the everyone’s efforts and commitment since our inception in 2017. As we approach the IPO, we are entering a new phase of expansion. We aim to enhance our investments in digital transformation, provide high-quality products and services, and broaden our impact.”