Nice One beauty retailer launches on Saudi Exchange, underscores Middle East beauty sector strength

Saudi beauty and personal care e-commerce site Nice One Beauty Digital Marketing Company debuted on the Saudi Exchange last week, raising US$323 million in its initial public offering (IPO).

Listed on Wednesday, January 8, Nice One’s shares were offered at SAR35 (US$9.31) per share and jumped 30% to SAR45.50 (US$12.10) per share after the launch in Riyadh, Saudi Arabia’s capital. The listing offered 34,650,000 ordinary shares, 30% of the company’s share capital.

“As we embark on the next chapter with our IPO, we are poised to build on this strong foundation and accelerate our growth. Our strategy focuses on expanding our brand portfolio, enhancing technological capabilities and continuing to deliver exceptional value to our customers,” says Nice One CEO Omar Al Olayan.

Nice One launched in 2017 and has become the country’s leading beauty and personal care e-commerce platform for skin care, makeup, hair care and fragrances, says the company. Nice One reports a 2023 revenue of SAR782.4 million (US$208.4 million) and a customer base exceeding 1.4 million.

“The transaction highlights the growing attractiveness of Saudi Arabia’s capital markets to investors,” says Nadine Nassar, counsel at international law firm Baker McKenzie, which advised Nice One on the IPO.

Beauty and the Middle East

The Middle Eastern beauty sector is drawing attention for its strength and growing demand, particularly for premium personal care products. Last summer, the industrial and consumer product company Henkel opened a beauty care production facility in Riyadh to produce more products for the region. 

“Investing in localizing our production in Riyadh brings us closer to our consumers and allows us to expand our portfolio with Pert Hair care products made right here,” says Irina Eliseeva, general manager of Henkel Consumer Brands.

Last October, Beauty World Middle East was held in Dubai, UAE, to spotlight the region as a “hotbed for growth in the global beauty and wellness ecosystem,” according to the event website.

Personal Care Insights reported on dsm-firmenich’s fragrance showcase at the exhibition, crafted in collaboration with the Al Shindagha Museum and Future Bedouin. The experience blended fragrance, art and design to “honor Dubai’s rich history in fragrance while inspiring new narratives in the art of scent,” says museum manager Abdalla Al Obeidli.