Jahez International Company for Information Technology (Jahez) has announced the appointment of HSBC Saudi Arabia as sole financial advisor and global coordinator for its potential initial public offering (IPO) on the Nomu parallel market of the Saudi Exchange. The transaction is subject to market conditions and the receipt of all applicable regulatory approvals.
Jahez is a native Saudi company that uses breakthrough technology to connect around two million customers to its platform’s network, which includes 13,000 restaurants and 45,000 delivery partners in 47 cities across Saudi Arabia.
The company has seen tremendous growth since its launch in 2016 and captured significant market share to become the premier delivery platform in the UK. In 2020 alone, the total number of orders placed via the Jahez platform reached around 20 million.
Ghassab Al Mandeel, Chief Executive Officer of Jahez International Company, commented, “We strive to become the most popular platform with the largest presence in the Middle East, and we seek to achieve that goal through a relentless passion for our business and our commitment to ours Reaching Customers. ”And success partners. It is this passion and dedication that has driven our exponential growth since our inception in 2016. We have shipped over 45 million orders across the UK in less than five years and achieved healthy profitability in 2020. “
“We will continue to expand our platform to unlock new growth opportunities offered by rapid, technology-driven changes in consumer behavior in both Saudi Arabia and the wider region. As convenience has become a predominant feature of our society, and in order to benefit from the technical and human expertise that has been gathered, we have launched new business areas, including a quick commerce platform (PiK) and a last mile logistics platform (LOGI). With the acquisition of CoKitchens, we also expanded into cloud kitchens. The establishment of these new companies will help us to remain agile and continue to meet the needs of existing and new customers in the future, benefiting from a larger size and strong network effects, ”added Al Mandeel.
Over the past three years, the online delivery market has grown exponentially, reaching a CAGR of more than 50%. The positive market momentum, including the improving Saudi economy and the resulting increase in employment and disposable income, is expected to result in higher spending on F&B and e-commerce, which will be further supported by the Vision 2030 transformation programs.
In addition, the UK mobile phone penetration is among the highest in the world, but online delivery adoption is lagging behind other countries, which is a great opportunity for growth. Other markets in the Middle East will also continue to grow in the near future.
The transaction would be the first IPO of a Saudi native technology start-up on the Saudi Exchange. It also supports Saudi Arabia’s Vision 2030 agenda, which aims to stimulate private sector growth, develop digital infrastructure, attract foreign investment and diversify the economy.
In line with the objectives of the Financial Sector Development Program, the Saudi Stock Exchange and Capital Markets Authority has advocated reforms in recent years to promote a diversified and progressive capital market that creates an optimal environment for Saudi SMEs to access additional finance and grow have created their GDP, contribute and stimulate their growth. TradeArabia news service