Derayah Financial secures Olayan Saudi as cornerstone investor for Tadawul IPO

Deal News | Feb 04, 2025 | Zawya

Derayah Financial secures Olayan Saudi as cornerstone investor for Tadawul IPO

Derayah Financial, a digital investment platform in Saudi Arabia, has entered into an agreement with Olayan Saudi Investment Company to act as a cornerstone investor for its Initial Public Offering (IPO) on Tadawul, the Saudi stock exchange. Olayan Saudi, the investment arm of Olayan Financing Company, will subscribe to 4,687,500 shares, equating to about 1.88% of Derayah's share capital after the offering. The IPO consists of 49,947,039 shares or 20% of Derayah’s issued share capital, with a price range set between 27 and 30 Saudi Riyals. This suggests an offering size of SAR 1.35 billion to SAR 1.50 billion and an anticipated market capitalization of SAR 6.74 billion to SAR 7.49 billion at listing. HSBC Saudi Arabia is handling the financial aspects and coordination of the offering. The institutional book-building started on February 2 and will conclude on February 9, 2025, with the final offering price set to be confirmed by February 13, after which retail subscription opens on February 20.

Sectors

  • Financial Services
  • Investment Management

Geography

  • Saudi Arabia – Both Derayah Financial and Olayan Saudi are based in Saudi Arabia, and the IPO is set to occur on Tadawul, the Saudi stock exchange, making the geography centrally relevant to this article.

Industry

  • Financial Services – Derayah Financial operates as a digital investment platform, placing it squarely within the financial services industry. The involvement in an IPO further signifies significant financial market activity.
  • Investment Management – Olayan Saudi, being an investment arm of Olayan Financing Company, indicates a focus on investment management. Their role as a cornerstone investor in Derayah's IPO reflects active participation in managing and allocating investments.

Financials

  • 4,687,500 shares – The number of shares Olayan Saudi is subscribing to in Derayah's IPO.
  • 27 to 30 SAR per share – The price range set for Derayah's IPO shares.
  • SAR 1.35 billion to SAR 1.50 billion – The expected size of the IPO offering.
  • SAR 6.74 billion to SAR 7.49 billion – The anticipated total market capitalization of Derayah at the time of listing.

Participants

NameRoleTypeDescription
Derayah FinancialTarget companyCompanyA digital investment platform in Saudi Arabia currently preparing for an IPO.
Olayan Saudi Investment CompanyCornerstone InvestorCompanyAn investment arm of the Olayan Financing Company, serving as a major investor in Derayah's IPO.
HSBC Saudi ArabiaFinancial Advisor, Bookrunner, Global Coordinator, Lead Manager and UnderwriterCompanyResponsible for managing the financial and administrative aspects of Derayah's IPO.