Saudi-listed United Electronics Company (eXtra) intends to launch an initial public offering (IPO) of its subsidiary, which owns the Islamic consumer finance business.

United International Holding Company owns Tasheel Finance, which provides non-banking financial services to eXtra’s clients.

The board approved the significant transaction in their meeting held on December 28, the company said in a statement to the Saudi stock exchange.

“The IPO will be a significant transaction subject to the approval of the shareholders of eXtra in accordance with Article 121 of the Rules on the Offer of Securities and Continuing Obligations,” the statement added.

The retailer will separately publish an invitation to its shareholders to attend the general meeting to vote on the significant transaction and issue a shareholders’ circular containing further information on the transaction upon obtaining regulatory approval

In May, eXtra appointed HSBC to arrange the public share sale, Reuters reported.

Tasheel provides Shariah-compliant consumer finance, buy-now-pay-later installment plans, and credit cards.

(Editing by Seban Scaria seban.scaria@lseg.com)