Saudi fintech Rasan’s IPO oversubscribed 129 times, priced at top of range
Following an overwhelming response from institutional investors, Riyadh-based fintech Rasan has set the final price for its IPO at SAR 37 per share, the top of its previously announced range, it announced on Wednesday. This means that the company will be raising a little over $224 million as a result of the offering and will have an implied market cap of $748 million.
Rasan announced its price range on May 12 when it kicked off the book-building process for institutional investors. With the final price, the company also announced the completion of the book-building on Wednesday, saying that they recorded orders for $29 billion, which represents a coverage of 129.1 times.
The Saudi firm will commence the retail subscription period later this month, enabling the retail investors to bid for company’s shares on May 29 and May 30.
Moayad Alfallaj, co-founder and CEO of Rasan, commenting on the successful response of investors, said, “We are delighted that Rasan’s IPO has been met with an overwhelming level of interest from institutional investors, resulting in a remarkable oversubscription of our shares. Pricing our IPO at the top of the range affirms the market’s deep confidence in Rasan’s strategic vision and highlights our commitment to a growth strategy that is designed to generate significant value for our shareholders. We are focused on capitalizing on this momentum to expand our market presence and drive sustainable long-term growth.”
Rasan is the largest online insurance company of the Kingdom. Founded in 2016, it runs Tameeni, Saudi’s leading online insurance aggregator that allows users to compare, buy or renew insurance for vehicles, health, or travel. The startup also operates other internet ventures in insurance and vehicle maintenance categories.
