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Derayah raises $400m ‘in minutes’ on day 1 of IPO book-building

A Tadawul trader. Derayah's final IPO price is due to be announced on February 13 Alamy/Hasan Jamali via Reuters Connect
A Tadawul trader. Derayah's final IPO price is due to be announced on February 13
  • 49.9m shares offered on Sunday
  • Book-building runs until February 9
  • Derayah to float 20% stake

The book-building phase of Derayah Financial’s initial public offering attracted massive demand on its first day, with institutional investors quickly covering subscriptions.

The Saudi online brokerage offered 49.9 million shares on Sunday to investment funds, qualified foreign companies and institutions, as well as Gulf and foreign investors, as part of an IPO book-building that is scheduled to run until February 9. 

Up to SAR1.5 billion ($400 million) was raised within minutes, with a price range of SAR27 to SAR30 per share. The final price will be based on early investor interest and announced on February 13.

Institutional investors, who under the terms of the IPO will be allocated a minimum of 90 percent of shares, covered Derayah’s books “within minutes”, according to Bloomberg.

Derayah is floating 20 percent of its shares in the IPO and a price of SAR30 would give the company a market capitalisation of $2 billion.

Last year 14 IPOs on the Saudi stock exchange raised more than $100 million after flotation. Online retailer Nice One and healthcare company Almoosa were the first to list in 2025 and their share prices have risen by 63 percent and 32 percent respectively.

A number of other companies have submitted IPO plans for 2025, including Riyad Capital, which is the investment arm of Riyad Bank, budget airline Flynas and poultry producer Entaj Industrial Services.

On Sunday Umm Al Qura Development & Construction announced plans to float 9.09 percent of its capital through an IPO on Tadawul. Pricing and timings have yet to be announced.

Umm Al Qura is developer of Masar, a mixed-use project in Mecca. Last week Saudi Arabia’s Capital Market Authority ruled that foreign investors would be allowed to trade shares of companies that own property in the holy cities.