Nice One Beauty, a prominent online cosmetics retailer based in Saudi Arabia, has announced plans for a substantial initial public offering (IPO) aiming to raise up to 1.21 billion riyals (approximately $322 million). This move represents a significant development in the rapidly expanding beauty sector within the region, adding momentum to a spree of IPOs that have characterized the Saudi market this year.
Founded in 2017, Nice One began as an e-commerce platform that primarily catered to consumers looking for beauty products. Its innovative approach has allowed the company to scale up its offerings significantly over the years, now featuring hundreds of local, regional, and international beauty brands, including its own in-house labels. This impressive expansion showcases how Nice One has positioned itself to cater to the growing demand for beauty products among consumers and investors alike.
The IPO will involve selling a 30 percent stake in the company at a share price range between 32 riyals to 35 riyals. If shares are priced at the higher end of the spectrum, Nice One could be valued at around 4 billion riyals. The institutional bookbuilding process for the IPO is slated to close on December 8, with financial giants EFG Hermes and SNB Capital acting as joint financial advisers.
The enthusiasm for beauty industry investments is evident, particularly in light of emerging opportunities within the Middle East. For instance, alongside Nice One’s IPO, Dubai-based Huda Beauty is also contemplating the sale of its rapidly growing perfume division. This suggests a broader trend where leading beauty brands are increasingly looking for avenues to capitalize on their success, possibly through public offerings or strategic sales.
Nice One’s IPO is not an isolated event but part of a larger trend within Saudi Arabia. The country has seen an influx of IPOs this year, collectively raising approximately $3 billion, indicating a vibrant market landscape. Other notable firms, including the fintech unicorn Tabby and online florist Floward, are also contemplating their own listings, further bolstering the digital services sector in the kingdom.
Moreover, the Middle East as a whole has experienced a remarkable financial drive, with firms raising around $10 billion from new share sales in 2024 alone. This includes initiatives from established players in various sectors, such as healthcare with the Saudi hospital operator Almoosa also unveiling plans to list.
The momentum surrounding Nice One Beauty’s IPO reflects the dynamic shifts occurring within the Saudi market, driven by economic growth and social reforms aimed at enhancing consumer culture. With the nation’s economy on an upward trajectory due to diverse initiatives and investment in sectors like technology and services, the beauty industry is poised for continued growth. Consumers are becoming increasingly aware and demanding of high-quality, diverse beauty offerings, a shift that Nice One has successfully tapped into.
As boundaries blur between local and international brands, and as consumers look for quality and variety, companies like Nice One are well-positioned to thrive. This IPO not only marks a pivotal moment for Nice One but potentially sets the stage for other beauty and retail businesses within the region to follow suit, thereby energizing the sector further.
In summary, Nice One’s announcement of its $320 million IPO highlights a significant step forward not just for the company, but also for the broader beauty market in Saudi Arabia. Investors are keenly watching how this offering will unfold as it could serve as an indicator of future opportunities within this vibrant and growing industry.
