Rasan Information Technology Co., a prominent Saudi fintech player, is gearing up for a significant move into the public market. The company has announced plans to sell a 30% stake through an Initial Public Offering (IPO), with the aim of listing its shares on Riyadh’s Tadawul exchange.
In collaboration with its stakeholders, Rasan will offer a total of 22.7 million shares in the IPO, including 5.3 million newly issued shares. Institutional investors will participate in the bookbuilding process from May 12 to May 16, while retail investors will have their opportunity from May 29 to May 30.
The pricing of the offered shares will be determined after the book-building phase by the selling shareholders, ensuring a fair valuation process. To facilitate the IPO, Rasan has engaged Morgan Stanley and Saudi Fransi Capital as joint financial advisers, bookrunners, and underwriters, with Saudi Banque Fransi and AlRajhi Bank acting as receiving banks.
With revenues reaching 256 million riyals ($68 million) in 2023, Rasan has demonstrated its strong performance and market presence. The company’s operations include Tameeni, an insurance aggregator, and Treza, a specialized insurance policy management solution catering to leasing companies and banks.
Rasan’s IPO announcement adds to the momentum of a dynamic Saudi market, joining other companies like Saudi Manpower Solutions Company (Smasco), Miahona Co. in water treatment, and Fakeeh Care Group. This move underlines the kingdom’s growing investment landscape and underscores Rasan’s potential as it embarks on its public market journey.
Speaking at an earlier event this year, Mohamed Al-Rumaih, CEO of the Saudi Exchange, highlighted the kingdom’s vibrant market activity, citing 120 listings over the past three years, raising more than $100 billion collectively. This thriving ecosystem reflects Saudi Arabia’s emergence as a global investment destination and sets the stage for Rasan’s next chapter in the fintech arena.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
6th May, 2024
