Fintech startup Rasan priced its IPO on main market Tadawul at SAR 37 per share, it said in a filing to the exchange. The institutional tranche of the offering was 129.1x oversubscribed, signaling strong investor appetite for the offering, the statement reads.

Background: Rasan is selling a 30% stake through an offering of existing and new shares. The sale sees Rasan offering 22.7 mn shares, including 17.4 mn shares from 15 selling shareholders and 5.3 mn new shares. Some SAR 40.4 mn will be deducted from the proceeds to cover the offering’s expenses, according to the prospectus (pdf).

Proceeds + market cap: The final price will allow the fintech outfit to raise SAR 841 mn from the IPO, and values the company at SAR 2.8 bn post-listing, according to our calculations.

What’s next? Bankers will be booking orders for 2.3 mn shares from retail investors for two days starting on Wednesday, 29 May 2024, before the final allocation takes place on Tuesday, 4 June. Refunds, if any, are scheduled for Thursday, 6 June.

Rasan’s services include ins. aggregator Tameeni, B2B leasing ins. platform Treza, automotive auction platform Awal Mazad, and car repair workshop Warshti. With offices in the Kingdom, the UAE, and Egypt, the company claims to have more than 8 mn customers, 60 partners, and 10 products, according to its website.

ADVISORS-Saudi Fransi Capital is quarterbacking the transaction as financial advisor, lead manager, bookrunner and underwriter. Morgan Stanley Saudi Arabia is also acting as financial advisor, bookrunner, and underwriter. Receiving banks include Banque Saudi Fransi and AlRajhi Bank. Latham & Watkins is Rasan’s legal advisor, while White & Case was appointed as legal advisor to the lead manager, financial advisors, underwriters, and bookrunners. PwC is financial due diligence advisor and marketing consultant and EY is serving as auditor.

SAUDI IPO PIPELINE AT A GLANCE-

Among the transactions now in the market or in the pipeline:

  • Fakeeh Care Group has priced its IPO at the top range after strong demand from institutional investors as it looks to become the largest IPO so far this year;
  • Fintech startup Rasan is set to sell a 30% stake, with subscription period for retail investors kicking-off on Thursday, 29 May;
  • Labor agency Saudi Manpower Company (Smasco) is selling a 30% stake and has priced the IPO at the top of the range;
  • Water treatment outfit Miahona has priced its IPO at the top of the range after recording strong investor appetite;
  • Nupco — a unit of the PIF — has reportedly tapped Rothschild & Co as financial advisor for its potential Tadawul IPO;
  • Budget airline Flynas is reportedly looking to go public this year;
  • PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital ;
  • Hotels and resorts operator Boudl has filed to go public;
  • Fourth Milling Company will list before the end of June;
  • Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
  • Hypermarket operator Lulu is said to be eyeing a dual listing on Tadawul and ADX;
  • Aster DM Healthcare looks set to spin off its GCC assets and seek a dual listing on Tadawul and in the UAE.
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