Saudi Firm Derayah’s $400 Million IPO Covered in Minutes - Bloomberg
Saudi Arabia’s Derayah Financial Co. had demand for all shares in its up to 1.5 billion riyals ($400 million) initial public offering minutes after subscriptions opened in a deal kicking off what is expected to be a busy year for share sales in the kingdom.
Books were covered throughout the price range of 27 riyals to 30 riyals a share, according to the terms of the deal seen by Bloomberg News.
The online brokerage and trading firm is offering a 20% stake in the IPO which would value the company at 7.49 billion riyals ($2 billion) at the top end of the price range, according to a statement on Sunday. The final price will be determined after completing the book-building process.
Derayah’s net income reached 330 million riyals in 2023, yielding a 53% net profit margin. Its dividend payout ratio was 69%, and its chief executive said in an interview that the trend was similar in the first half of 2024.
Companies raised just over $4 billion through new share sales in the kingdom last year, and the pipeline for 2025 looks robust.
In late January, poultry business Entaj Industrial Services Co. announced plans to IPO on the local bourse, while others including technology services firm Ejada Systems Ltd. and developer Umm Al Qura for Development & Construction Co. have regulatory approvals to list.
Lender Riyad Capital, low-cost carrier Flynas, and three firms from the Saudi wealth fund’s portfolio have lined up banks for share sales, Bloomberg News has reported.
Meanwhile, Almoosa Health Co. and Nice One Beauty Digital Marketing Co. both listed in January and posted strong early returns.
Derayah was established in 2009 and offers online brokerage, trading and asset management services. It had 15.1 billion riyals in assets under management as of June 2024, according to its website.
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