Saudi Arabia’s Derayah Financial has announced plans to launch an initial public offering (IPO) on Riyadh’s main market, marking the first such announcement this year. The company intends to sell a 20% stake, equivalent to 49.94 million existing shares. The final price will be set after a book-building process.
Co-founder and chairman Taha AlKuwaiz expressed enthusiasm about the IPO, highlighting the firm’s commitment to innovation and economic transformation in Saudi Arabia.
Established in 2009, Derayah offers brokerage, trading, and wealth management services, managing assets worth 15.1 billion riyals ($4.03 billion) as of June.
This potential listing is part of a surge in Gulf IPOs, influenced by regional economic diversification efforts. Last year, several financial services companies, including Rasan Information Technology and Yaqeen Capital, entered the market. More firms, such as Riyad Bank’s investment arm, may follow this trend.
Derayah reported a 70% increase in net profit for the first half of 2024, reaching 228 million riyals ($60.80 million). HSBC Saudi Arabia will serve as the sole financial adviser and underwriter for the IPO.