Waja Company announced in an official statement on the Saudi Stock Exchange (Tadawul) website its intention to issue SAR-denominated sukuk with a total value of SAR 10 million, under a dedicated sukuk issuance program and through a private placement. This strategic step is subject to terms and conditions that will be disclosed in detail in the upcoming prospectus.
Details of the appointment of the ranking manager and digital platform
In preparation for this offering, the company clarified that it has appointed Sukuk Financial as the sole arranger for the issuance. This partnership aims to establish the potential program and manage the issuance and offering process of the sukuk through Sukuk Financial's website. Sukuk Financial is a fintech platform authorized by the Saudi Capital Market Authority for issuing and investing in debt instruments, reflecting the trend among companies to leverage modern digital solutions in financing.
IPO and capital expansion objectives
Waja Company indicated that the proceeds from this offering, amounting to SAR 10 million, will be primarily directed towards supporting the company's capital expansions. The company aims to use this liquidity to strengthen its financial position and implement its operational plans, which are designed to increase its market share and develop its existing and future projects. The company confirmed that the completion of the offering is contingent upon the arranger obtaining the necessary regulatory approvals from the Capital Market Authority.
Context of the growth of the debt market in the Kingdom and Vision 2030
Waja's move towards issuing sukuk comes at a time when the Saudi debt market is witnessing significant growth, driven by the objectives of the Financial Sector Development Program, one of the programs under the Kingdom's Vision 2030. The Vision aims to deepen the debt market to become a primary financing channel for companies, alongside traditional bank financing. The recourse of listed companies, whether on the main market or the parallel market (Nomu), to issuing sukuk is a positive indicator of the maturity of the financial market and the diversification of financing options available to the private sector.
The importance of sukuk as a financing tool
Sukuk are gaining increasing importance in the Saudi economy as Sharia-compliant financial instruments that provide companies with the liquidity needed for expansion without having to liquidate assets or borrow at conventional interest rates. Furthermore, issuing these sukuk through fintech platforms contributes to broadening the investor base, allowing individuals and institutions to participate in financing national companies and receive periodic returns, thus promoting a culture of saving and investment within the local community.
