Derayah Financial Sets IPO Price Range, Valuation Up to SR7.49 Billion

Saudi Arabia’s independent digital investment platform, Derayah Financial Co., has announced the price range for its highly anticipated initial public offering (IPO), setting it between SR27 ($7.20) and SR30 per share. This pricing values the company at up to SR7.49 billion, positioning it as a major listing on the Saudi Exchange.

The institutional book-building process will take place from February 2 to February 9, with the final offer price set upon completion of the process, the company said in a statement. The offering includes 49.95 million shares, representing 20 percent of Derayah Financial’s issued share capital. The IPO is expected to raise between SR1.35 billion and SR1.50 billion.

Saudi Fintech Growth and Market Expansion

Derayah Financial’s move to go public aligns with Saudi Arabia’s broader push to expand its fintech sector, a key pillar of the kingdom’s Vision 2030 economic diversification strategy. The Financial Sector Development Program aims to enhance financial inclusion, increase the sector’s economic contribution, and drive innovation in digital financial services.

The offering consists of a partial sale by existing shareholders, with proceeds distributed among them. As a company backed by the Public Investment Fund, Derayah Financial will not receive any funds from the offering itself.

Following regulatory approvals, the shares will be listed on the Saudi Exchange. Existing shareholders will retain an 80 percent stake post-listing, with at least 60 percent of their holdings subject to a 24-month lock-up period. This restriction applies to major stakeholders, including board members and executives.

IPO Allocation and Subscription Details

The offering is primarily open to institutional investors, including qualified foreign institutions, investment funds, and investors based in the Gulf Cooperation Council (GCC). Up to 10 percent of the IPO, or approximately 4.94 million shares, will be allocated to individual investors, with the remaining shares designated for institutional buyers.

If retail demand proves strong, the institutional allocation could be reduced to 90 percent of the total offering. The retail subscription period will begin on February 20 and close on February 22, with final share allocations confirmed on February 27.

Market Position and IPO Trends

Derayah Financial is a leading independent player in Saudi Arabia’s brokerage sector and holds the third-largest market share in the country’s digital investment industry. As of June 30, the company managed assets worth SR15.1 billion.

Saudi Arabia has witnessed a surge in IPO activity in recent years, leading the GCC region in public offerings. A report by the Kuwait Financial Center (Markaz) revealed that Saudi IPOs raised $4.1 billion across 42 listings, making the kingdom the region’s most active market.

The broader GCC IPO market also saw strong growth, with total proceeds rising 23 percent year-on-year to $13.2 billion across 53 offerings in 2024. With the growing interest in Saudi fintech firms and capital markets, Derayah Financial’s listing is expected to attract significant investor interest, further solidifying the kingdom’s position as a hub for financial innovation and investment.