Rasan Information Technology has set its final offering price for its anticipated IPO on the Saudi stock exchange at the upper limit of 37 riyals per share.
High Demand
The pricing for the company, operating in both the financial technology and insurance technology sectors, came after the completion of the institutional order book-building process, which was covered approximately 129.1 times.
Allotted shares were fully subscribed by participating entities, totaling 22.74 million shares, representing the total shares offered for subscription by “Rasan” in the initial stage.
So What
The public offering saw significant investor interest, attracting orders worth $29 billion (approximately 108.6 billion riyals). This marks one of the Kingdom’s first public offerings for a financial technology company, reflecting strong demand for stock sales in the country.
It’s worth noting that “Tadawul,” the largest and most liquid stock market in the Arab world, has witnessed a surge in listings in recent years. This is part of the state’s plans to strengthen its local stock exchange, develop the private sector, and attract foreign investment.
Some Context
The upper limit of the price range will raise the company’s market value to 2.8 billion riyals ($747 million) at the listing, making it one of the largest financial technology companies in the Middle East and North Africa region, according to estimates from “MAGNiTT” research company.
It’s worth mentioning that “Rasan” has provided its technological services to 7.5 million clients in Saudi Arabia by the end of September last year.
Now what
The second stage of the subscription will allocate two million and 274 thousand shares, representing a maximum of 10% of the total shares offered to individual investors.
The offering period for individual investors in the company’s shares is scheduled to start on May 29th and continue until May 30th.
