Saudi Rasan’s $224m IPO oversubscribed 129.1 times

Saudi Arabia fintech firm Rasan said on Tuesday that it has attracted $29bn (SAR108.6bn) in investor orders for its initial public offering (IPO) on the local bourse, as listings in the kingdom pick up after a short hiatus.

Rasan priced its IPO at the top of the previously announced range, selling its shares at SAR37 per share apiece to raise SAR841m, amid robust investor demand, which saw the offering oversubscribed by 129.1 times.

“Pricing our IPO at the top of the range affirms the market’s deep confidence in Rasan’s strategic vision and highlights our commitment to a growth strategy that is designed to generate significant value for our shareholders,” said Moayad Alfallaj, co-founder and CEO of the company.

“We are focused on capitalising on this momentum to expand our market presence and drive sustainable long-term growth.”

The pricing of SAR37 per share implies a market valuation of around SAR2.8bn at listing. The fintech firm is offering 5.3 million new shares and 17.4 million existing shares to investors – equivalent to 30 per cent of the company’s paid-up capital.

The strong investor demand shows that the appetite for listings in the Middle East remains healthy even as IPOs elsewhere struggle to gain traction.

Rasan said the proceeds from the share sale will be distributed to the selling shareholders, with the remaining to be used to finance its growth strategy.

Founded in 2016, the fintech firm operates online insurance platforms such as Tameeni and Treza. The company said its full-year revenues reached $68m (SAR256m) in 2023.

Tameeni provides motor, SME Health, travel and medical malpractice insurance services as aggregators while Treza offers insurance policy management solutions for leasing companies and banks.

Rasan joins other tech companies in Saudi Arabia that are considering going public such as the buy-now, pay-later firm Tabby, e-commerce platform Floward and the online cosmetics retailer Nice One.

Read: Alef Education to list on Abu Dhabi Securities Exchange