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IPO Monitor | Derayah Financial IPO: Final Offer Price Set at SAR 30 per Share, Institutional Offering 162x Oversubscribed
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Derayah Financial IPO Overview
Riyadh, 13 February 2025G - Derayah Financial Company, an independent digital investment platform based in Saudi Arabia, announced the successful completion of the institutional book-building period for Participating Parties and setting the final offer price for its initial public offering (IPO).
Key Information for Investors at Current Stage:
- Final Offer Price: SAR 30 per share, at the top of the previously announced range.
- Market Capitalization at Listing: Approximately SAR 7.5 billion (USD 2.0 billion).
- Total Offering Size: Around SAR 1.5 billion (USD 400 million).
- Oversubscription: The institutional offering was oversubscribed by approximately 162 times, with a total of SAR 243 billion in orders.
- Subscription Period for Individual Investors: Starts on Thursday, 20 February 2025, and ends on Saturday, 22 February 2025.
Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO
Background to the Offering
On 25 December 2024, the Capital Market Authority (CMA) of Saudi Arabia approved the registration of the company’s share capital and the Offering of 49,947,039 ordinary shares, representing 20% of its total issued share capital. These shares are being sold by the Company’s current shareholders in proportion to their existing ownership.
The price range for the offering was set between SAR 27 and SAR 30 per share. The institutional book-building process began on 2 February 2025 and concluded on 9 February 2025.
Lock-up Period: At least 60% of the company’s shares will be subject to a 24-month lock-up period following the start of trading.
Once the listing and regulatory formalities are completed with the CMA and the Saudi Exchange, the Offer Shares will be traded on the Main Market of the Saudi Exchange. The exact listing date will be announced at a later stage.
IPO Summary
| Category | Details |
|---|---|
| Company Name | Derayah Financial Company |
| Market | Main Market (TASI) |
| Core Activities | Digital brokerage and asset management services. |
| Issue Percentage | 20% |
| Number of Offered Shares | 49.95 million |
| Qualified Subscribers | Participating institutions & Retail investors |
Investor Groups
The Offering will be restricted to two specific groups of investors:
Tranche (A): Institutional Investors
This tranche includes various institutional participants eligible to take part in the book-building process, such as:
- Investment funds
- Qualified foreign companies and institutions
- Gulf Cooperation Council (GCC) investors
- Other foreign investors
Tranche (B): Individual Investors
This tranche is available to Saudi nationals and residents of certain countries, including:
- Saudi natural persons (including divorced or widowed Saudi women with minor children from a non-Saudi husband, subject to the submission of relevant proof)
- Non-Saudi natural persons residing in Saudi Arabia or GCC nationals who have a bank account with one of the Receiving Entities and are eligible to open an investment account.
Special conditions apply:
- A subscription for shares made in the name of a divorcee will be deemed void, and the law will be enforced against the applicant if such an action occurs.
- If a duplicate subscription is made, only the first subscription will be accepted, and the second will be considered void.
- Individual subscribers must have an active stock portfolio with a Capital Market Institution associated with the Receiving Agent through which they are subscribing. Subscriptions without an active portfolio will be deemed void, and any amounts paid will be refunded, according to the company's statement.
Anticipated Timeline for the Subscription
| Event | Dates |
|---|---|
| Application registration period for Participating Parties and the Book Building Process | 8 days starting from Sunday, 02/02/2025G (03/08/1446H) until 2:00 p.m. Kingdom time on Sunday, 09/02/2025G (10/08/1446H) |
| Subscription period for Individual Subscribers | 3 days starting from Thursday, 20/02/2025G (21/08/1446H) until 5:00 p.m. Kingdom time on Saturday, 22/02/2025G (23/08/1446H) |
| Deadline for submission of Subscription Applications for Participating Parties based on the number of shares provisionally allocated to each of them | Monday, 17/02/2025G (18/08/1446H) |
| Deadline for payment of subscription amounts for Participating Parties based on the number of shares provisionally allocated to each of them | Wednesday, 19/02/2025G (20/08/1446H) |
| Deadline for submission of Subscription Applications and payment of subscription amounts (for Individual Subscribers) | 5:00 p.m., Saturday, 22/02/2025G (23/08/1446H) |
| Announcement of final allocation of Offer Shares | No later than Thursday, 27/02/2025G (28/08/1446H) |
| Refund of excess subscription monies (if any) | No later than Tuesday, 04/03/2025G (04/09/1446H) |
| Expected date of commencement of trading on the Exchange | Trading is expected to commence after the fulfillment of all relevant statutory requirements. The start of share trading will be announced on the Saudi Tadawul website. |
Source: The Company
Note: The above timeline and dates are approximate. Actual dates will be communicated through announcements in local daily newspapers published in Arabic, on Tadawul’s website, the Financial Advisor’s website, and the Company’s website.
Read the full Prospectus
Further updates regarding this IPO will be provided as more information becomes available.
- Reporting by Zaid, Sahm News team