Rasan Information Technology Co., along with its shareholders, aims to raise up to 841 million riyals ($224 million) in an initial public offering in Riyadh, marking one of the first IPOs by a fintech firm in Saudi Arabia, Bloomberg reported.
The firm has set the share price range at 35 to 37 riyals, according to a recent announcement. Rasan plans to sell 5.3 million new shares, while existing shareholders will offer 17.4 million shares.
This IPO could value the company, which operates the insurance platform Tameeni, at up to 841 million riyals. The bookbuilding process for institutional investors will continue until May 16.
This IPO is part of a recent surge in market activity, with Rasan being the fourth company to launch an IPO in Saudi Arabia in recent weeks.
The kingdom’s stock exchange chief executive anticipates the momentum to maintain, with over ten companies poised to go public.
Recent IPOs have met with strong investor interest, signaling a robust appetite for new share offerings in the kingdom.
Notably, the Dr. Soliman Abdul Kader Fakeeh Hospital’s IPO, potentially the largest of 2024, was fully subscribed within an hour, and water treatment company Miahona’s offering was oversubscribed by institutional investors 170 times.
While the technology sector in Saudi Arabia has seen fewer listings, the success of food delivery firm Jahez’s IPO in late 2021 highlighted significant investor interest.
Other technology firms, including buy-now-pay-later service Tabby and online cosmetics retailer Nice One, are also considering IPOs.
Founded in 2016, Rasan is Saudi Arabia’s largest insurance aggregator and operates platforms like Tameeni and Treza. In 2023, the company reported revenues of 256 million riyals and a net income of 46 million riyals.
Saudi Fransi Capital and Morgan Stanley are serving as joint financial advisers, bookrunners, and underwriters for the IPO.
