Safari for Trading and Marketing Co. (Shgardi App), a closed joint stock company based in Al-Khobar, announced appointing Watheeq Financial Services as a financial advisor for its capital increase through listing on Nomu - Parallel Market.
The potential offering will be subject to the regulatory approvals from the Capital Market Authority (CMA) and Saudi Exchange Co. (Tadawul).
Shgardi was established in early 2020, with a capital of SAR 12 million. It is managed by a team of 178 employees.
The company is currently working in more than 85 cities and governorates, serving more than two million customers, and contracting with more than 3,000 restaurants.
In a statement, Shgardi stated that its strategy is aimed at expanding in the Saudi market by increasing its customer base and the number of contracted restaurants, as well as doubling its growth rates and market share in 2022. In addition, the company seeks to expand regionally in some neighboring markets in the next year.
Abdulaziz Almoosa, CEO and Founder of Shgardi, expressed pleasure at signing the agreement with Watheeq, given the great importance the move represents for Shgardi that aspires to be one of the major technology companies in the Middle East by 2030.
Listing on the capital market will boost the company's governance and transparency, which aligns with its commitment towards shareholders and owners.
Touching on the possibility of merger and acquisition, Almoosa said the company received an acquisition offer from a global peer that seeks to enter the Saudi market.
However, the offer was rejected as Shgardi aims to continue its local and regional expansion. In addition, the firm prefers listing on the capital market over acquisition, the CEO added.
Ali Al-Othaim, a major shareholder of Shgardi, also expressed his delight about the move, stressing that his strong belief in Shgardi team was the key driver for his early investment in the app and his participation in several investment rounds.
Al-Othaim added that the success achieved is just modest, compared to the size of the Saudi delivery market that reaches nearly $1.2 billion – the biggest in the region - and the growth expected in the next five years.
He also underscored the strong capabilities of Shgradi cadres, giving a bullish outlook for the potential share sale, which is likely to be finalized by the end of 2022.
Elsewhere, Abdullah Al Muhareb, CEO at Watheeq Financial, lauded Shgardi’s plan for listing on Nomu, after fulfilling the necessary regulatory approvals.
He added that the move will add a qualitative value to the companies listed on the Saudi market.
Shgardi’s capital increase through the planned offering will help the app expand its operations and increase its competitive ability, Al Muhareb noted.
It is noteworthy that Shgardi has seen three investment rounds to fund the project. It is currently in the third round ahead of the planned listing on Nomu. The app targeted retail and institutional investors in all investment rounds.