Derayah Financial Sets IPO Price Range, Eyes $1.5 Billion in Offerings
Saudi brokerage firm Derayah Financial announces price range for its IPO, valuing the company at up to $7.49 billion with shares set to be listed on the Saudi Exchange.
Derayah Financial Co., an independent digital investment platform in Saudi Arabia, has set the price range for its upcoming initial public offering (IPO) at between SR27 ($7.20) and SR30 per share.
This would value the company at up to SR7.49 billion.
The IPO, which is part of the kingdom's broader strategy to expand its fintech sector, includes a total of 49.95 million shares, representing 20 percent of the company’s issued share capital.
It is expected to raise between SR1.35 billion and SR1.50 billion.
The institutional book-building period for the IPO will run from February 2 to 9, with the final offer price to be determined afterward.
The shares will be listed on the Saudi Exchange following regulatory approvals.
The offering is open to institutional investors, including qualified foreign institutions and GCC-based investors, with up to 10 percent of the offering, or 4.94 million shares, allocated to individual investors.
If demand from retail investors is high, the institutional allocation may be reduced to 90 percent.
Derayah Financial, which holds the third-largest market share in Saudi Arabia's digital investment sector, has assets under management totaling SR15.1 billion as of June 30. The company will not receive any proceeds from the offering, as it is a partial sale by existing shareholders.
Following the IPO, major shareholders, including executives and board members, will retain 80 percent of the company, with a 24-month lock-up period for at least 60 percent of the shares.
Saudi Arabia’s IPO market has seen significant growth in recent years, with the country leading the GCC region by raising $4.1 billion across 42 IPOs in 2023, according to a report from Kuwait Financial Center (Markaz).
This would value the company at up to SR7.49 billion.
The IPO, which is part of the kingdom's broader strategy to expand its fintech sector, includes a total of 49.95 million shares, representing 20 percent of the company’s issued share capital.
It is expected to raise between SR1.35 billion and SR1.50 billion.
The institutional book-building period for the IPO will run from February 2 to 9, with the final offer price to be determined afterward.
The shares will be listed on the Saudi Exchange following regulatory approvals.
The offering is open to institutional investors, including qualified foreign institutions and GCC-based investors, with up to 10 percent of the offering, or 4.94 million shares, allocated to individual investors.
If demand from retail investors is high, the institutional allocation may be reduced to 90 percent.
Derayah Financial, which holds the third-largest market share in Saudi Arabia's digital investment sector, has assets under management totaling SR15.1 billion as of June 30. The company will not receive any proceeds from the offering, as it is a partial sale by existing shareholders.
Following the IPO, major shareholders, including executives and board members, will retain 80 percent of the company, with a 24-month lock-up period for at least 60 percent of the shares.
Saudi Arabia’s IPO market has seen significant growth in recent years, with the country leading the GCC region by raising $4.1 billion across 42 IPOs in 2023, according to a report from Kuwait Financial Center (Markaz).