Logo of Rasan Information Technology Co.
Rasan Information Technology Co. opens today, May 29, retail subscription to 2.27 million shares, at SAR 37 each, as set through the book-building process.
The shares allocated to individual investors represent 10% of the company's total offered shares.
The two-day retail offer will end on May 30.
The institutional offering ended last week, with a coverage ratio of 129.1x.
In March, the Capital Market Authority (CMA) approved Rasan’s application to list and offer 22.74 million shares on TASI, representing 30% of its post-IPO capital and 32.3% of pre-IPO capital. This represents 17.44 million shares by the selling shareholders and 5.3 million new shares, with a nominal value of SAR 1 apiece.
Rasan's IPO is the seventh this year for the Main Market, after Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care Group) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26 and Al Taiseer Group Talco Industrial Co. (TALCO) on May 28.
Tadawul witnessed eight IPOs in 2023, including MBC Holding Group Ltd., Morabaha Marina and Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co., First Milling Co., Lumi Rental Co., ADES Holding Co., and SAL Saudi Logistics Services Co.
Company profile
Rasan was established in 2016 as a limited liability company in Riyadh. In 2022, it was converted into a closed Saudi joint stock company.
The company's main activities are focused on the financial technology (Fintech) sector, including designing and programming of special software, application development, and Fintech solutions, in addition to offering the necessary services related to website hosting and data preparation. The company also offers electronic publishing services, publishes ready-made software, and provides marketing services on behalf of others.
The group's actual activities involve offering a number of products and platforms to individual and corporate clients, as well as small and medium-sized enterprises (SMEs) in the Fintech sector.
Rasan's segments include vehicle insurance, medical insurance, leasing, online auctions, and data analysis segment named “R Solutions”.
It is the first entity to obtain a license from the Saudi Central Bank to provide electronic insurance brokerage activities in the Kingdom. The group's gross written premiums amounted to SAR 4.8 billion as of Sept. 30, 2023.
|
Subsidiaries |
|||||
|
Company |
Country |
Date of Inception |
Capital |
Direct and Indirect Ownership |
Other Partners (if any) |
|
Awal Mozawadah Information Technology LLC |
Saudi Arabia |
2020 |
SAR 100,000 |
100% |
-- |
|
Tameeni Electronic Insurance Brokerage Ltd. |
Saudi Arabia |
2022 |
SAR 500,000 |
100% |
-- |
|
Treza LLC |
Saudi Arabia |
2023 |
SAR 500,000 |
100% |
-- |
|
Rasan Software House LLC |
UAE |
2017 |
AED 300,000
|
100% |
-- |
|
Rasan LLC |
Egypt |
2019 |
EGP 100,000 |
99% |
1% owned by Moayad Abdullah AlFallaj |
The total size of the current markets in which the company operates in the Kingdom reached about SAR 18.5 billion in 2022. Rasan expects its target markets to grow by approximately 450% (SAR 82.5 billion) by 2027.
The company stated that it has recently launched medical malpractice and travel insurance products. It also plans to offer new products in the near future, such as insurance for domestic worker contracts, life insurance, general insurance for SMEs, corporate health insurance, claims management, and solutions for the consumer lending sector.
Rasan intends to provide a digital lending platform for car loans, to benefit from its partnerships with banks and financial institutions through Treza, which will allow customers to compare and choose the appropriate vehicle, submit a financing request, obtain financing approval, and even deliver the vehicles to customers’ homes.
|
Current and Future Markets |
|||
|
Items |
2022 (SAR bln) |
2027 (SAR bln) |
CAGR (2022-2027) |
|
Current Markets |
|||
|
Medical insurance for SMEs |
7.9 |
14.7 |
13.1% |
|
Retail motor insurance |
5.4 |
11.4 |
15.9% |
|
Finance leased vehicles |
2.5 |
4.4 |
12.1% |
|
Salvaged, used rental and repossessed vehicles |
2.6 |
3.1 |
3.3% |
|
Total current markets |
18.5 |
33.6 |
12.7% |
|
Future markets |
|||
|
Corporate medical insurance |
14.0 |
26.5 |
13.6% |
|
General insurance |
9.0 |
13.1 |
7.9% |
|
Insurance of vehicles for SMEs sector |
2.4 |
4.7 |
14.3% |
|
Life insurance |
1.9 |
4.0 |
16.1% |
|
Medical malpractice insurance |
0.3 |
0.6 |
11.8% |
|
Total future markets |
27.6 |
48.9 |
12.1% |
|
Total current and future markets |
46.1 |
82.5 |
12.3% |
The company's market share in the retail motor insurance segment grew from 26% in 2019 to 36% in 2021, as the company indicated that this was due to its relationships with insurance companies and continued investments in technology.
It added that the increasing digital adoption in the Kingdom enabled Tameeni to continue increasing its share in the individual market to 44.6% in 2022, and it was expected to reach 47% in 2023.
The following table indicates the volume of Tameeni’s written premiums for the retail motor insurance product compared to the sector's total from 2019 to 2023:
|
Tameeni’s Written Premiums for Retail Motor Insurance |
|||||
|
|
2019 |
2020 |
2021 |
2022 |
2023 (Expected) |
|
Rasan Company (Tameeni) |
979 |
1314 |
1585 |
2426 |
3700 |
|
Retail motor insurance |
3735 |
4329 |
4343 |
5445 |
7826 |
|
Market share (Tameeni) |
26.2% |
30.4% |
36.5% |
44.6% |
47.3% |
|
Company Profile |
|
|
Company |
Rasan Information Technology Co. |
|
Market |
TASI |
|
Core Activities |
Financial technology (Fintech) |
|
Capital |
SAR 70.5 mln |
|
Capital after IPO |
SAR 75.8 mln |
|
Number of shares after IPO |
75.8 mln shares |
|
Par Value |
SAR 1 |
|
IPO Summary |
|
|
Issue Percentage |
30% of capital (32.3% of pre-IPO capital) |
|
Offer price |
SAR 37 |
|
Retail Offer |
2.27 mln shares |
|
Qualified Subscribers |
Retail Investors |
|
IPO Minimum Limit for Retail Investors |
10 shares |
|
IPO Maximum Limit for Retail Investors |
100,000 shares |
|
Retail Offering |
Two days from May 29-30, 2024. |
|
Final Allocation |
June 4, 2024 |
|
Refund (if any) |
June 6, 2024 |
|
Additional Information |
|
|
Financial Advisor, Lead Manager, Institutional Bookrunner and Underwriter |
Saudi Fransi Capital - Morgan Stanley Saudi Arabia |
|
Lead Manager |
Saudi Fransi Capital |
|
Receiving Banks |
Banque Saudi Fransi - Al Rajhi Bank |
|
Major Shareholders |
||||
|
Shareholders |
Before IPO |
Post-IPO |
||
|
Number of Shares (mln shares) |
Ownership (%) |
Number of Shares (mln shares) |
Ownership (%) |
|
|
Impact Funds Company for Financial Technology |
13.15 |
18.65% |
9.90 |
13.06% |
|
Theeb Hudayban Ghallab Al-Motairi |
9.98 |
14.15% |
7.51 |
9.91% |
|
Mohaidib Ali Mohammed Al-Mohaidib |
8.64 |
12.26% |
6.51 |
8.58% |
|
Samer Mohammed Raslan |
6.64 |
9.43% |
5.00 |
6.60% |
|
Mohammed Mohaidib Ali Al-Mohaidib |
4.65 |
6.60% |
3.50 |
4.62% |
|
Impact Asset Preservation CIT Company |
4.52 |
6.41% |
3.40 |
4.49% |
|
Fahd Ahmed Mohammed Abu Hamid |
3.45 |
4.90% |
2.60 |
3.44% |
|
Majid Abdullah Mohammed Al Bawardi |
3.41 |
4.83% |
2.56 |
3.38% |
|
Moayed Abdullah Mohammed Al Bawardi |
3.41 |
4.83% |
2.56 |
3.38% |
|
Abdulrahman Abdullah Abdulrahman bin Aiban |
3.41 |
4.83% |
2.56 |
3.38% |
|
Sami Mohaidib Ali Al Mohaidib |
3.33 |
4.72% |
2.50 |
3.20% |
|
Ayman Abdullah Suleiman Al-Falaj |
1.57 |
2.23% |
1.18 |
1.56% |
|
Suleiman Abdullah Suleiman Al-Falaj |
1.57 |
2.23% |
1.18 |
1.56% |
|
Thamer Abdullah Suleiman Al-Falaj |
1.57 |
2.23% |
1.18 |
1.56% |
|
Abdulilah Mohammed Manie Al-Ghufaili |
1.20 |
1.71% |
0.90 |
1.20% |
|
Public |
-- |
-- |
22.74 |
30% |
|
Total |
70.50 |
100% |
75.80 |
100% |
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