Derayah Financial Company in KSA Goes Above & Beyond

The digital investment platform in Saudi Arabia, Derayah Financial, announced that it has signed a binding investment undertaking agreement with the main investor, Olayan Saudi Investment Company (OSIC), and issued a supplementary prospectus for its initial public offering (IPO).

The company stated that Olayan Saudi Investment Company has agreed to purchase about 4,687,500 shares of the offering at the final price, which will account for 1.88% of the business’s capital once the offering is over.

Moreover, with a price range of SAR 27 to SAR 30 per share, Derayah Financial’s offering will likely be between SAR 1.35 billion (about US$360 million) and SAR 1.50 billion (around US$400 million). At listing, the business will have a market capitalisation of between SAR 6.74 billion and SAR 7.49 billion.

We examine the key points surrounding Derayah’s qualitative jump in Saudi Arabia in this piece.

Derayah Financial’s IPO: A Quantum Leap

Participating companies had to start creating their books on February 2, 2025, and finish by February 9. Once the book-building period was over, the final offering price came to light. The offering will include the sale of about 49.95 million common shares, or 20% of the company’s current capital.

Derayah Financial’s shares jumped 30% to SAR 39 per share at the start of trading on the main Saudi market. At over SAR 87.75 million, Derayah shares had the highest trading value, and there were about 2.25 million shares traded. Further, at the offering price of SAR 30 per share, Derayah made approximately 50 million shares, or 20% of the company’s capital, available for public subscription.

Besides, the trade and international symbols for Derayah Financial were 4084 and SA1690F1VQ15, respectively. With fixed price fluctuation restrictions of 10% up or down, the daily price fluctuation limits will be 30% up or down.

According to Tadawul, these restrictions will only be in effect for the first three days following listing. The fourth trading day will see the removal of the preset price fluctuation restrictions; there will be a 10% increase or decrease in the daily price fluctuation restrictions.

Read more: The Steps Entailed with Establishing a Company in the KSA

Derayah IPO Subscription & Share Allocation

With an allocation ratio of 0.4299%, the remaining shares will be distributed pro rata according to the amount of each subscriber’s application to the total number of shares needed for subscription. Each application received a fractional portion in descending order, beginning with the highest demand and continuing until all shares were used up.

Additionally, individual customers’ subscription period ran from February 20, 2025, to February 22 of the same year. Individual subscribers purchased all the allotted shares through receiving entities, totalling 4,994,704 shares (10% of the total issued shares), for SAR 30 per share.

Further, the total number of individual subscribers was 586,422, and 4,994,704 shares went out to people. Individual applications totalling SAR 2.25 billion made up the individual offering, which surpassed 15.1 times.

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Company’s Market Value & Recent Developments

Upon listing, the company’s market value will be around SAR 7.5 billion, or $2 billion, and the total offering size will be around SAR 1.5 billion, or $400 million. The total value of orders from both domestic and foreign investors during the institutional bookbuilding process came to about SAR 243 billion. With a coverage ratio of 162 times, the institutional IPO demonstrated the high demand from institutional investors.

In addition, during the Money 20/20 FinTech Conference, Mohammed Al Shammasi, CEO of Derayah Financial, made a significant announcement. He declared, “The company struck several strategic agreements to enhance technical solutions and increase the number of investors in the Saudi financial industry. As part of its mission to offer cutting-edge investment services and expand opportunities for international investors, Derayah is doing this.”

Furthermore, the company and Tamra Financial business inked two investment agreements to work together in the areas of investment fund distribution and financial technology. The CEO also announced the signing of a contract with “Alpaca,” a global platform that connects financial brokers. More than 200 brokers make up its global network, which serves over 5 million clients.

Regarding digital development, Derayah’s technical services—most notably the digital financial adviser service the company introduced—possess sophistication and are up-to-date with contemporary trends. With over 13,000 registered clients and assets under management surpassing 50 million riyals, this service has experienced substantial growth.

Read more: Saudi Arabia Introduces ‘Saudi Eksab’ as Part of Vision 2030 Initiative