https://arab.news/br7p4
- Offering comprises 49.95 million shares — equivalent to 20% of the company’s issued share capital
- It is expected to raise between SR1.35 billion and SR1.50 billion
RIYADH: Saudi Arabia’s independent digital investment platform Derayah Financial Co. has set the price range for its initial public offering at SR27 ($7.20) to SR30 per share, valuing the company at up to SR7.49 billion.
The institutional book-building period will run from Feb. 2— 9, with the final offer price determined thereafter, the company said in a statement.
The offering, comprising 49.95 million shares — equivalent to 20 percent of the company’s issued share capital — is expected to raise between SR1.35 billion and SR1.50 billion.
Derayah Financial’s planned IPO aligns with Saudi Arabia’s broader push to develop its fintech sector, which has seen significant growth in recent years.
The Financial Sector Development Program aims to boost fintech’s economic contribution, enhance financial inclusion, and drive innovation in digital financial services.
The IPO consists of a partial sale by existing shareholders, with the proceeds distributed among them. The Public Investment Fund-backed company said it would not receive any funds from the offering.
The shares will be listed on the Saudi Exchange following regulatory approvals. According to the release, current shareholders will retain an 80 percent stake in the company post-listing, with a 24-month lock-up period applying to at least 60 percent of the stock held by major stakeholders, including executives and board members.
The company said the offering is open to institutional investors, including qualified foreign institutions, investment funds, and Gulf Cooperation Council-based investors.
It added that up to 10 percent of the offering, or 4.94 million shares, will be allocated to individual investors, with the remainder reserved for institutional buyers. If retail demand is strong, the institutional allocation could be reduced to 90 percent of the total offering.
Retail subscription is scheduled to open on Feb. 20 and close on Feb. 22, with final share allocation set for Feb. 27, the release added.
Derayah Financial is among the leading independent firms in brokerage revenues and holds the third-largest market share in Saudi Arabia’s digital investment sector, with assets under management totaling SR15.1 billion as of June 30.
Saudi Arabia has seen a surge in IPO activity in recent years, leading the GCC region by raising $4.1 billion across 42 offerings, according to a report from the Kuwait Financial Center, also known as Markaz.
The report also said that IPO proceeds in the GCC increased by 23 percent compared to 2023, reaching a total of $13.2 billion across 53 public offerings last year.