Phoenix Venture Partners Acquires Stake in Saudi Arabia's COFE Ahead of IPO

Abu Dhabi-based Phoenix Venture Partners acquired existing shares in Saudi tech firm COFE through a secondary transaction closed ahead of a pre-IPO funding round being prepared by the company, according to a report by the "FWD Start" newsletter. The parties did not disclose the transaction size, the stake value, the share price, or the sellers of the shares.

Investors participated in the deal alongside Phoenix, including KSH Investments, the international investment platform affiliated with the Private Department of Sheikh Mohammed bin Khalid Al Nahyan. Steve Khayat, founder and CEO of Phoenix Venture Partners, joined COFE's board of directors.

In September, COFE announced a $43 million pre-IPO funding round at a post-money valuation of $178 million. The company aims to list on the Saudi Exchange (Tadawul) by 2029, making the secondary transaction an early step on the path to listing.

A secondary transaction means that the investor purchased shares from existing shareholders rather than injecting new capital into the company; thus, the deal did not provide COFE's treasury with additional capital. The company did not disclose further details regarding its ownership structure following the transaction.

What Do These Terms Mean?

Secondary Transaction: The sale of existing shares in a company from an existing shareholder to a new investor, rather than issuing new shares.

Pre-IPO: A funding round closed before listing on a stock exchange, aimed at preparing the company for market requirements.

Post-Money Valuation: The value of the company after adding new funds to its capital, which differs from its valuation before the round.

Listing: Offering a company's shares for public trading on a stock exchange, enabling investors to buy and sell them.