Derayah Financial debuts on Saudi Exchange after $400m IPO
Derayah’s listing aligns with Saudi Arabia’s broader efforts to deepen its capital markets as part of the Financial Sector Development Program under Vision 2030
Saudi Arabia’s Derayah Financial Company began trading on the Main Market of the Saudi Exchange on Monday, following the successful completion of its initial public offering (IPO), which raised approximately SAR1.5bn ($400m).
The IPO saw the sale of 49.95 million ordinary shares, representing 20 per cent of the company’s issued share capital, through a partial sale by existing shareholders.
The offering was priced at 30 riyals per share, the top end of the indicative price range, giving the company an initial market capitalisation of around SAR7.5bn.
Derayah, an independent digital investment platform, is trading under the ticker symbol 4084.
Derayah IPO saw strong demand from investors
The offering was met with strong demand from institutional and retail investors.
Institutional investors, who were allocated 90 per cent of the offered shares, generated an order book worth SAR243bn, equating to a subscription coverage of 162 times the shares available in this tranche.
The retail investor tranche, comprising 10 per cent of the offering, saw participation from 586,422 individual investors, generating demand worth SAR2.3bn and achieving a subscription coverage of 15 times.
Taha AlKuwaiz, co-founder and chairman of Derayah, described the listing as a “historic moment” for the company.
“Since our establishment in 2009, Derayah has been committed to empowering individuals to build their wealth by simplifying the investment process. The overwhelming interest in our IPO is a testament to the confidence investors have in our business model and growth strategy,” AlKuwaiz said in a statement.
Saudi Arabia’s capital markets expansion
Derayah’s listing aligns with Saudi Arabia’s broader efforts to deepen its capital markets as part of the Financial Sector Development Program under Vision 2030.
The kingdom has seen a surge in IPO activity as companies look to capitalise on strong investor appetite and a buoyant stock market.
The company plans to leverage the proceeds from the offering to enhance its brokerage leadership, expand its asset management services, and further develop its digital wealth management offerings.
HSBC Saudi Arabia acted as the sole financial advisor, bookrunner, global coordinator, lead manager, and underwriter for the IPO.
