Fintech
Saudi Fintech’s $224 Million IPO Attracts Orders Worth $29 Billion
(Bloomberg) — Investors have raised about 108.6 billion riyals ($29 billion) in orders for one of the first initial public offerings by a fintech firm in Saudi Arabia, continuing a trend of strong demand for the sale of actions in the kingdom.
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Rasan Information Technology Co.’s IPO was oversubscribed 129.1 times, according to a statement on Wednesday. The offering was priced at 37 riyals per share, the top of a previously announced range, allowing it to raise 841 million riyals.
Like some of its Gulf countries, Saudi Arabia is seeking to diversify its stock market beyond the banks and industrial companies that have typically dominated it.
A number of companies have unveiled plans to list on the Riyadh Stock Exchange in recent weeks and have met with overwhelming demand from investors. Several offers recorded triple-digit subscriptions, a sign that the list boom of recent years still has legs.
Saudi Manpower Solutions Co. took in more than $30 billion in orders earlier this month. Meanwhile, investors took in $91 billion in orders for a hospital group’s IPO — one of the highest in recent years for Saudi IPOs that have raised more than $500 million, data compiled by Bloomberg show. Saudi Aramco’s record IPO in 2019 attracted 397 billion riyals in orders from fund managers.
Rasan, which operates online insurance platforms such as Tameeni and Treza, will be among the first fintech firms to list in the kingdom, which has so far seen only a few tech listings. In addition to Rasan, buy-now-pay-later company Tabby and online cosmetics retailer Nice One are among the tech companies eyeing IPOs, Bloomberg News reported.
Rasan’s retail offering will open on May 29 for two days, while Saudi Manpower’s will be available on May 26 and 27.
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