• The institutional book-building process garnered total orders of SAR 243 billion from local and international investors
  • The institutional offering was approximately 162 times oversubscribed, indicating the strong level of demand from institutional investors
  • The subscription period for Individual Investors starts on Thursday, 20 February 2025G and ends on Saturday, 22 February 2025G 

Riyadh - Derayah Financial Company (“Derayah” or the “Company” or the “Issuer”), the leading independent digital investment platform in Saudi Arabia (the “Kingdom” or “KSA”), today announces the successful completion of the institutional book-building period for Participating Parties and setting the final offer price for its initial public offering (the “IPO” or “Offering”).

The Final Offer Price has been set at SAR 30 per share, which is at the top end of the previously announced price range for the IPO. The Final Offer Price implies a market capitalization of the Company at listing of c. SAR 7.5 billion (c. USD 2.0 billion), with the total size of the offering being c. SAR 1.5 billion (c. USD 400 million).

Taha AlKuwaiz, Co-Founder and Chairman of Derayah, said: “We are incredibly delighted with the demand from institutional investors, and I am pleased to say that we’ve had overwhelming interest from investors in KSA, the GCC, and further afield. The fact that the books were covered within minutes of the start of book-building, and that the total demand exceeded SAR 243 billion is a testament to our position as the leading independent digital investment platform in Saudi Arabia. We are excited for what lies ahead and look forward to delivering on our vision by driving innovation, creating value, and contributing to the Kingdom’s diversification agenda.”

The subscription period for retail investors (“Individual Investors”) will start on Thursday, 20 February 2025G and end on Saturday, 22 February 2025G.  

For more information, please visit ipo.derayah.com

Background to the Offering

  • On 25 December 2024G, the Capital Market Authority (the “CMA”) approved the Company’s application for registering its share capital and the Offering of 49,947,039 ordinary shares (“Offer Shares”), representing 20% of the Company’s issued share capital, by way of a partial sale by the Company’s current shareholders in proportion to their existing shareholding (the “Selling Shareholders”).
  • The Price Range (“Price Range”) of the Offering had been set between SAR 27 and SAR 30 per share. 
  • The book-building process started on Sunday, 2 February 2025G and ended on Sunday, 9 February 2025G. The process generated a total value of SAR 243 billion in orders from local and international investors, meaning that the institutional offering was 162 times oversubscribed.
  • The Final Offer Price of the Offering has been set at SAR 30 per share, implying a market capitalization at listing of c. SAR 7.5 billion (c. USD 2.0 billion).
  • The total size of the offering is c. SAR 1.5 billion (c. USD 400 million).
  • The Offer Shares will be listed and traded on the Main Market of the Saudi Exchange following the completion of the IPO and listing formalities with the Capital Market Authority (“CMA”) and the Saudi Exchange, with the date to be announced at a later stage.
  • The Selling Shareholders collectively own the majority of the Company’s Shares prior to the Offering. Following completion of the Offering, the Selling Shareholders will collectively own 80% of the Company’ share capital.
  • The net proceeds of the Offering will be distributed to the Selling Shareholders in proportion to their respective ownership of the Offer Shares. The Company will not receive any part of the Offering Proceeds.
  • After listing, at least 60% of the Company's shares shall be subject to a lock-up period of 24 months from the date of the start of trading of the Company's shares on the main market. All shareholders holding 3% or more of the Company's share capital, as well as directors and senior executives who hold shares in the Company will be subject to this lock-up period (as described in the published Prospectus). New shareholders will not be subject to the lock-up period.
  • All Offer Shares have been offered to Participating Parties, with a claw back to Individual Investors of up to 10% of the offered Shares.
  • With respect to the Offering, the Company has appointed HSBC Saudi Arabia as sole financial advisor, bookrunner, global coordinator, lead manager and underwriter.
  • Derayah Financial Company, Alinma Investment Company, Alistithmar Capital, Aljazira Capital, Alkhabeer Capital, Al Rajhi Capital, ANB Capital, BSF Capital, GIB Capital, Riyad Capital, SAB Invest, Sahm Capital, SNB Capital, and Yaqeen Capital act as Receiving Entities (collectively, the “Receiving Entities”) for the Individual Investors tranche.
  • Individual Investors wishing to subscribe to the Offer Shares must submit their subscription requests electronically through the websites and platforms of the Receiving Entities that provide this service to subscribers, or through any other means provided by the Receiving Entities through which the Individual Investors will be able to subscribe to the Company's shares during the Offering Period.