Fintech
Saudi Arabian fintech firm Rasan plans to sell a 30% stake in its Riyadh IPO
Saudi Arabian fintech firm Rasan plans to sell a 30% stake in its Riyadh initial public offering, making it one of the first companies in the sector to go public in the kingdom.
Rasan and its investors will offer 22.7 million shares in the IPO, including 5.3 million new shares, according to a statement on Sunday. Bookbuilding for institutional investors will take place from 12 to 16 May, while retail investors will be able to bid from 29 to 30 May.
Rasan hired Morgan Stanley and Saudi Fransi Capital as financial advisors, bookrunners and joint underwriters for the offering, Bloomberg News reported in 2023. Rasan posted revenues of 256 million riyals ($68 million) in 2023.
Founded in 2016, Rasan operates online insurance platforms such as Tameeni and Treza. In 2021 it an investment round closed of 90 million riyals led by Impact46, a Saudi alternative asset manager.
Rasan will be the fourth Saudi company to announce an IPO in the past two weeks, as the kingdom’s stock market resumes after a brief hiatus. Saudi media group Dr. Soliman Abdul Kader Fakeeh Hospital launched a massive $763 million IPO on Thursday that sold out within an hour.
Water treatment firm Miahona Co. stopped accepting orders from investors on Thursday after repeatedly receiving oversubscriptions, while Saudi Manpower Solutions Co. announced its listing plans on April 29.
Although Saudi Arabia has been a very active IPO market over the past couple of years, the majority of newly listed companies were not from the technology sector. One of the few was food delivery firm Jahez, which raised 1.8 billion riyals in an oversubscribed IPO in late 2021.
Rasan joins other tech firms in the Kingdom targeting IPOs, such as buy now, pay later company Tabby and online cosmetics retailer Nice One, Bloomberg News reported in January. Along with other Gulf countries, Saudi Arabia is seeking to diversify its stock market beyond the banks and industrial companies that have typically dominated it.
Photograph: Visitors sit in a room displaying stock price information on a digital screen inside the Saudi Stock Exchange, also known as Tadawul, in Riyadh, Saudi Arabia, Tuesday, April 10, 2018. Photo credit: Abdulrahman Abdullah/ Bloomberg
Copyright 2024 Bloomberg.
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