Derayah Financial Company sets final offer price for IPO
COMMERCIAL NEWS
Derayah Financial Company, the leading independent digital investment platform in Saudi Arabia, has announced the successful completion of the institutional book-building period for participating parties and setting the final offer price at SAR30 per share for its initial public offering (IPO).
On December 25 last year, the Saudi Capital Market Authority had given the go-ahead to the company for registering its share capital and the offering of 49.9 million shares, representing 20% of the Derayah Financial Company’s issued share capital.
The price range of the Offering had been set between SAR27 and 30 per share.
The book-building process started this month (February 2) and ended on February 9. It received an overwhelming response from both local and international investors with the institutional offering being oversubscribed 162 times.
The process generated a total value of SAR243 billion ($65 billion) in orders.
The SAR30 per share price 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 SAR7.5 billion ($2 billion), with the total size of the offering being SAR1.5 billion ($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 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 IPO. Following completion of the Offering, these 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, it stated.
For the IPO, Derayah 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 will act as Receiving Entities for the Individual Investors tranche.
On the IPO, Co-Founder and Chairman Taha AlKuwaiz said: "Derayah is 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 SAR243 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," he added.
The subscription period for retail investors will kick off on February 20 and end on February 22.-TradeArabia News Service
