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Saudi fintech Rasan Information Technology Co. made a strong debut in Riyadh, raising 841 million riyals ($224 million) amid a listing spree in the kingdom. The shares soared 30% to 48.1 riyals from the offer price of 37 riyals, reflecting the high demand when the offer was announced. Investors placed orders worth $29 billion, making the deal 129 times oversubscribed. Saudi Arabia, like some of its Gulf peers, is working to diversify its stock exchange beyond banks and industrial companies.
- The kingdom’s technology sector has seen few listings, with the notable exception of food delivery firm Jahez in late 2021. However, recent weeks have seen a surge in companies unveiling plans to list on the Riyadh bourse, attracting overwhelming investor interest. Saudi Aramco’s mega stock offering this month raised $11.2 billion, the biggest such deal globally in about three years, to help fund a multitrillion-dollar economic transformation push. Saudi Fransi Capital and Morgan Stanley acted as joint financial advisers, bookrunners, and underwriters for Rasan’s IPO.
Why it matters
Rasan, operating online insurance platforms like Tameeni and Treza, is among the first fintech firms to go public in Saudi Arabia. Alongside Rasan, buy-now-pay-later company Tabby and online cosmetics retailer Nice One are also eyeing IPOs.
