Saudi Fintech Firm Rasan Targets $224 Million in IPO

Rasan Information Technology Co., a leading fintech company in Saudi Arabia, has announced its intention to raise up to 841 million riyals ($224 million) through an initial public offering (IPO) on the Riyadh stock exchange. This marks a significant milestone as one of the first IPOs by a fintech firm in the Kingdom, as reported by Bloomberg.

The company has established a share price range between 35 to 37 riyals. The offering will comprise 5.3 million new shares issued by Rasan, along with 17.4 million shares sold by existing shareholders.

The IPO is expected to value Rasan, which operates the prominent insurance platform Tameeni, at up to 841 million riyals.

Rasan’s IPO is part of a recent surge in market activity, being the fourth company to launch an IPO in Saudi Arabia in recent weeks. The CEO of the Kingdom’s stock exchange anticipates continued momentum, with over ten companies expected to go public shortly.

Recent IPOs have attracted substantial investor interest, indicating a strong market appetite for new share offerings in the Kingdom. Notably, the IPO of Dr. Soliman Abdul Kader Fakeeh Hospital, potentially the largest of 2024, was fully subscribed within an hour. Similarly, water treatment company Miahona’s offering was oversubscribed by institutional investors 170 times.

While the Saudi technology sector has seen fewer listings, the successful IPO of food delivery firm Jahez in late 2021 demonstrated significant investor interest. Other technology firms, such as buy-now-pay-later service Tabby and online cosmetics retailer Nice One, are also considering IPOs.

Founded in 2016, Rasan is Saudi Arabia’s largest insurance aggregator, operating platforms like Tameeni and Treza. In 2023, Rasan reported revenues of 256 million riyals and a net income of 46 million riyals.

Saudi Fransi Capital and Morgan Stanley are serving as joint financial advisers, bookrunners, and underwriters for Rasan’s IPO.