RIYADH: Saudi Arabia’s Derayah Financial Co demands all shares in its initial public offering (IPO), which is valued at up to 1.5 billion riyals, just minutes after subscriptions opens.
This marks the beginning of 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.
Additionally, the online brokerage and trading firm is offering a 20% stake in the IPO which would value the company at 7.49 billion riyals at the top end of the price range, according to a statement yesterday.
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 US$4bil through new share sales in the kingdom last year, and the pipeline for 2025 looks robust.
Derayah was established in 2009 and offers online brokerage, trading and asset management services. — Bloomberg
