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Derayah Financial Sets IPO Price Range at $7.20 to $8 per Share Targeting $1.5 Billion in Proceeds

Prime Highlights: 

Derayah Financial sets its initial public offering (IPO) price between SR27 ($7.20) and SR30 ($8.00) per share. 

The offering, comprising 49.95 million shares (20% of the company’s share capital), is expected to raise between SR1.35 billion and SR1.50 billion. 

The institutional book-building period will run from February 2 to February 9, with the final offer price to be determined afterward. 

Key Background: 

Saudi Arabia’s independent digital investment platform, Derayah Financial Co., has announced the price range for its upcoming initial public offering (IPO), with shares priced between SR27 ($7.20) and SR30 ($8.00). The IPO is expected to raise between SR1.35 billion and SR1.50 billion, representing 20% of the company’s issued share capital through an offering of 49.95 million shares. This valuation positions the company at a maximum of SR7.49 billion. 

The IPO process will commence with an institutional book-building period from February 2 to February 9, after which the final offer price will be determined. Following regulatory approvals, Derayah’s shares will be listed on the Saudi Exchange. The offering will involve a partial sale by existing shareholders, with proceeds distributed among them, and the company itself will not receive any funds from the sale. 

As part of the Kingdom’s broader strategy to strengthen its fintech sector, the offering is aligned with the Financial Sector Development Program’s objectives to foster innovation, enhance financial inclusion, and increase the economic contribution of fintech. The offering is open to institutional investors, including qualified foreign institutions, investment funds, and Gulf Cooperation Council-based investors. Additionally, up to 10% of the offering, or 4.94 million shares, will be available to individual investors. 

The retail subscription phase is scheduled to open on February 20 and close on February 22, with final share allocations set for February 27. Post-listing, current shareholders will retain an 80% stake in the company, with a 24-month lock-up period applying to at least 60% of their shares. Derayah Financial 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, 2024.