Derayah Financial retail IPO 15.1x covered, 8 share/subscriber

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Derayah Financial Co. successfully completed its retail subscription for listing on the Main Market (TASI).

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Individual investors will receive a minimum of eight shares each, while the remaining shares will be allocated on a pro-rata basis, based on the size of each individual investor’s request compared to the total remaining subscribed shares with an average allocation factor of 0.4299%.

The company stated that upon the successful completion of the book-building process for institutional investors, the final offering price was set at SAR 30 per share. This implies a market capitalization of approximately SAR 7.5 billion ($2 billion) at the time of listing.

According to data available to Argaam, retail investors began subscribing, on Feb. 20, to 4.99 million shares of Derayah Financial at SAR 30 per share, which was determined through the book-building process.

The retail tranche accounts for 10% of the total offering.

The institutional subscription was approximately 162x oversubscribed.

Riyadh-headquartered, Derayah Financial is a joint stock company established in April 2009.

The company's current capital is SAR 499.5 million, divided into 249.74 million shares, at a par value of SAR 2 per share.

The company's main activity, according to its articles of association and as stated in its commercial register, is dealing in securities, managing investments and operating funds, arranging, advising and custody of securities.