IPO Monitor | Derayah’s IPO: 49.95 Million Shares to Hit Saudi Market - Timeline Updated
Tadawul All Shares Index TASI.SA | 0.00 |
Derayah Financial IPO Overview
Riyadh, 23 January 2025 – Derayah Financial Company, an independent digital investment platform based in Saudi Arabia, has announced its intention to list its shares on the Main Market of the Saudi Exchange (Tadawul). The company aims to offer 49,947,039 ordinary shares, representing 20% of its issued share capital, through an initial public offering (IPO).
Offering Details
The IPO was approved by the Capital Market Authority (CMA) on 25 December 2024, and the shares will be offered by the company’s existing shareholders through a partial sale, in proportion to their current holdings. The price of the Offer Shares will be determined after the completion of the book-building process.
The shares will be available for subscription by both individual and institutional investors. Institutional investors will be given priority, with up to 10% of the shares reserved for individual investors. The shares will be listed on Tadawul after the completion of all necessary formalities with the CMA.
Company Background
Founded in 2009, Derayah offers brokerage services as well as asset and wealth management solutions. The company serves a wide and diverse client base, benefiting from a proprietary technology infrastructure designed for scalability and a superior digital user experience.
Derayah’s key business segments include:
- Digital Brokerage: Offering access to 43 local, regional, and international markets, the platform provides various financial instruments such as equities, fixed income, and derivatives.
- Asset & Wealth Management: As of 30 June 2024, Derayah manages SAR 15.1 billion in assets, covering both public and private markets.
Leadership Comments
Taha Alkuwaiz, Co-Founder and Chairman of Derayah, expressed the company’s excitement about the IPO and its vision for future growth. “We are proud to announce the launch of our IPO, which reflects our commitment to democratizing investment opportunities in the Kingdom,” he stated. Alkuwaiz emphasized Derayah’s role as a pioneer in digital investment platforms in Saudi Arabia, contributing to the Kingdom’s broader economic transformation.
Mohammed Alshammasi, Chief Executive Officer of Derayah, highlighted the company’s growth trajectory and its strategic focus on expanding both its brokerage and asset management businesses. Alshammasi also noted Derayah’s investment in Bank D360, a Shariah-compliant digital bank, which is expected to provide additional opportunities for growth.
Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO
IPO Summary
| Category | Details |
|---|---|
| Company Name | Derayah Financial Company |
| Market | Main Market (TASI) |
| Core Activities | Digital brokerage and asset management services. |
| Issue Percentage | 20% |
| Number of Offered Shares | 49.95 million |
| Qualified Subscribers | Participating institutions & Retail investors |
Investor Groups
The Offering will be restricted to two specific groups of investors:
Tranche (A): Institutional Investors
This tranche includes various institutional participants eligible to take part in the book-building process, such as:
- Investment funds
- Qualified foreign companies and institutions
- Gulf Cooperation Council (GCC) investors
- Other foreign investors
Tranche (B): Individual Investors
This tranche is available to Saudi nationals and residents of certain countries, including:
- Saudi natural persons (including divorced or widowed Saudi women with minor children from a non-Saudi husband, subject to the submission of relevant proof)
- Non-Saudi natural persons residing in Saudi Arabia or GCC nationals who have a bank account with one of the Receiving Entities and are eligible to open an investment account.
Special conditions apply:
- A subscription for shares made in the name of a divorcee will be deemed void, and the law will be enforced against the applicant if such an action occurs.
- If a duplicate subscription is made, only the first subscription will be accepted, and the second will be considered void.
- Individual subscribers must have an active stock portfolio with a Capital Market Institution associated with the Receiving Agent through which they are subscribing. Subscriptions without an active portfolio will be deemed void, and any amounts paid will be refunded, according to the company's statement.
Anticipated Timeline for the Subscription
| Event | Dates |
|---|---|
| Application registration period for Participating Parties and the Book Building Process | 8 days starting from Sunday, 02/02/2025G (03/08/1446H) until 2:00 p.m. Kingdom time on Sunday, 09/02/2025G (10/08/1446H) |
| Subscription period for Individual Subscribers | 3 days starting from Thursday, 20/02/2025G (21/08/1446H) until 5:00 p.m. Kingdom time on Saturday, 22/02/2025G (23/08/1446H) |
| Deadline for submission of Subscription Applications for Participating Parties based on the number of shares provisionally allocated to each of them | Monday, 17/02/2025G (18/08/1446H) |
| Deadline for payment of subscription amounts for Participating Parties based on the number of shares provisionally allocated to each of them | Wednesday, 19/02/2025G (20/08/1446H) |
| Deadline for submission of Subscription Applications and payment of subscription amounts (for Individual Subscribers) | 5:00 p.m., Saturday, 22/02/2025G (23/08/1446H) |
| Announcement of final allocation of Offer Shares | No later than Thursday, 27/02/2025G (28/08/1446H) |
| Refund of excess subscription monies (if any) | No later than Tuesday, 04/03/2025G (04/09/1446H) |
| Expected date of commencement of trading on the Exchange | Trading is expected to commence after the fulfillment of all relevant statutory requirements. The start of share trading will be announced on the Saudi Tadawul website. |
Source: The Company
Note: The above timeline and dates are approximate. Actual dates will be communicated through announcements in local daily newspapers published in Arabic, on Tadawul’s website, the Financial Advisor’s website, and the Company’s website.
Further updates regarding this IPO will be provided as more information becomes available.
- Reporting by Zaid, Sahm News team