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IPO, Initial public offering concept. Businesswomen use a tablet with virtual IPO words with stock graphs to boost the growth of the IPO process. Image used for illustrative purpose. Getty Images
Retail demand for Derayah Financial’s IPO saw the Saudi brokerage platform raise nearly 2.3 billion Saudi riyals ($613 million), representing 10% of the total offering.
The offering witnessed a participation of 586,422 retail subscribers, with a subscription coverage of approximately 15 times the offered shares in this tranche.
Retail Investors will receive a minimum of eight shares each, while the remaining shares to be allocated on a pro-rata basis, based on the size of demand. The institutional book-building process ended with an over subscription of 162 times, with recorded orders of approximately SAR 243 billion.
The final offer price was set at SAR 30 per share, at top of the range, implying a market capitalization SAR 7.5 billion at listing.
HSBC Saudi Arabia was appointed as sole financial advisor, bookrunner, global coordinator, lead manager and underwriter.
A trading date for the SAR 1.5 billion Tadawul IPO has yet to be announced.
(Writing by Bindu Rai, editing by Seban Scaria)
