In September, the company obtained the Capital Market Authority's (CMA) approval to float 1.36 million shares, or 13% of its share capital.
The offering consists of the issuance of new shares representing 8.5% of share capital and sale of a 4.5% stake of capital on a pro-rata basis. The company will allocate up to 15% of the offered shares to implement the price stabilization mechanism. The shares will be issued to qualified retail and institutional investors.
The final offering price will be set after completing the book building process.
Company CEO Ghassab Al Mandeel said: “With 1.3 million active users across 47 cities in the Kingdom by the end of the first quarter this year, the company continues to expand its successful food delivery platform to tap into new growth opportunities offered by rapid changes in consumer behavior.
"We continue to invest in our proprietary technology and new business verticals, including cloud kitchens, quick commerce and last mile logistics, to capture future growth," Al Mandeel said.
Jahez remains agile, taking advantage of the economies of scale and the network effect to meet the needs of customers, in line with its vision of becoming the most loved lifestyle platform with the largest presence in the Middle East, Al Mandeel noted.
As of March 31, 2021, over 1.3 million active customers on the platform have access to around 12,000 branches and stores, connected by over 34,000 delivery partners.
Jahez provides on-demand services, quick commerce, and last mile delivery through its cutting-edge technology platforms, connecting customers, merchants, and delivery partners across 47 cities in the Kingdom.
Launched in 2016, the Jahez platform is one of the leading forces behind the disruptive shift to online food delivery in the Kingdom, supported by the growing adoption of online delivery as well as the proliferation of mobile devices adoption and delivery culture over the past few years.
As of Q1 2021, the group had a network of more than 12,000 merchant branches, 1.3 million active users, and 34,000 delivery partners. In pursuing its goal of expanding customer and merchant base, Jahez developed a number of service offerings and currently provides a wide array of delivery and logistical services, through its five main business streams.
currently provides a wide array of delivery and logistical services, through its five main business streams.
The company has Jahez Platform that is the heart of the group’s operations, and its technology serves as a source of orders for merchants and provides complete logistical support and payment collection processes. Jahez platform aims to connect merchants, customers, and delivery partners via a user-friendly mobile application by providing a quick, seamless and an almost entirely automated end-to-end delivery experience.
Jahez also has PIK Platform that is a quick commerce (q-commerce) business that serves as a platform for local merchants within customers’ reach and aims to connect customers with an array of their favourite brands within a period of two to three hours. The group established PIK in 2020 to expand its reach beyond food delivery and is now able to provide customers with various retail goods, ranging from fashion and cosmetics to computer hardware and appliances.
In addition, the group acquired a 60% stake in CoKitchens in 2020, which is a cloud kitchens platform providing food businesses with commercial kitchen spaces with no dine-in facilities, to prepare food and sell them via a delivery only model. Cloud kitchens represent a hallmark of modern dining trends, with restaurants increasingly relying on online food delivery as a way to increase their reach without the additional costs of high rent and waiting staff.
Among the other platforms owned by the group is Logi that was established in 2021 as a market enabler for the e-commerce and delivery industry in general by providing logistical solutions. Logi aims to be a leading power behind the last mile delivery in the Kingdom, and to empower local merchants by reducing operational costs. Logi will also serve as a centralized platform to support the group in its logistical and operational needs.
Jahez also has Red Color platform that was established as the group’s investment arm in order to pursue its growth objectives. The group targets investments in technology-related industries which utilize the group’s existing assets of customers, merchants, and delivery partners.
The offering will be divided into two tranches as follows:
The first tranche includes allocating 100% of the offered shares to qualitied institutional investors. The final allotment will be carried out after the end of retail subscription. The lead manager will have the right to reduce the number of shares allocated to institutional investors to a minimum of 1.09 million shares, representing 80% of the total offered shares.
As for the second tranche, 20% of the total offered shares, representing 272,800 shares, will be allocated for the qualified retail investors.
The qualified retail investor is any legal person who has the right to open investment accounts inside the Kingdom, and accounts with Edaa, and who has executed deals in securities markets, with a total value of not less than SAR 40 million, and not less than 10 deals in each quarter during the past 12 months. In addition, he should have net assets value of no less than SAR 5 million and is working or have worked for at least three years in the financial sector.
The qualified retail investor should also hold a general certificate in securities dealing, approved by the CMA, and hold a professional certificate in the field of securities business, approved by an internationally recognized body.