{"id":86078,"date":"2024-05-13T00:00:00","date_gmt":"2024-05-13T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/13\/rasan-one-step-closer-to-tadawul-ipo\/"},"modified":"2024-05-13T00:00:00","modified_gmt":"2024-05-13T00:00:00","slug":"rasan-one-step-closer-to-tadawul-ipo","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/13\/rasan-one-step-closer-to-tadawul-ipo\/","title":{"rendered":"Rasan one step closer to Tadawul IPO"},"content":{"rendered":"

Fintech startup Rasan has set a price range of SAR 35-37 per share for its <\/strong>IPO on<\/strong> Tadawul\u2019s <\/strong>main market<\/strong>, according to a statement (pdf)<\/a>. It is selling a 30% stake<\/a> through an offering of existing and new shares. That range means Rasan could raise as much as SAR 841 mn from the IPO, and values the company at up to SAR 2.8 bn, according to our calculations.<\/p>\n

Subscription to the IPO kicked off yesterday for institutional investors<\/strong> and will run until this Thursday, 16 May. Retail investors will have two days to place their orders starting Thursday, 29 May. The share sale sees Rasan offering 22.7 mn shares, including 17.4 mn shares from 15 selling shareholders and 5.3 mn news shares.<\/p>\n

What\u2019s next?<\/strong> The final allocation of shares will take place on Tuesday, 4 June, with any excess subscription fees set to be refunded by Thursday, 6 June. The first day of trading remains contingent on meeting fulfilling relevant regulatory requirements.<\/p>\n

Use of proceeds:<\/strong> Rasan plans to use the proceeds to \u201cexpand the group\u2019s current operations and products, market and develop the group\u2019s new products, and finance the general purposes of the group,\u201d it had said in its intention to float (pdf)<\/a>. A portion of the net proceeds \u2014 after deducting SAR 40.4 mn to cover IPO-related expenses \u2014 will be distributed to the selling shareholders on a pro rata basis. <\/p>\n

REMEMBER- Rasan is a first mover in an industry with plenty of room to grow <\/strong>thanks to both the under-penetration of the industry and ins. industry targets in Vision 2030. Per the ITF: \u201cIns. penetration in the Kingdom, defined as gross written premiums as % of GDP, stood at 1.3% in 2022, considerably lower relative to regional markets (UAE: 2.5%, Bahrain: 1.7%) and even lower compared to the global average of 6.6%.\u201d<\/p>\n

ADVISORS-<\/strong> Saudi Fransi Capital<\/strong> is quarterbacking the transaction as financial advisor, lead manager, bookrunner and underwriter. Morgan Stanley Saudi Arabia<\/strong> is also acting as financial advisor, bookrunner, and underwriter. Receiving banks include Banque Saudi Fransi <\/strong>and AlRajhi Bank<\/strong>. Latham & Watkins<\/strong> is Rasan\u2019s legal advisor, while White & Case<\/strong> was appointed as legal advisor to the lead manager, financial advisors, underwriters, and bookrunners. PwC <\/strong>is financial due diligence advisor and marketing consultant and EY<\/strong> is serving as auditor.<\/p>\n

SAUDI IPO PIPELINE AT A GLANCE-<\/p>\n

Among the transactions now in the market or expected soon:<\/strong><\/p>\n