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Saudi VC Impact46 to get its second IPO with the Tadawul listing of Rasan

Riyadh-based VC firm Impact46 is set to have its second IPO with the upcoming Tadawul listing of local fintech Rasan. The Saudi firm was also an investor in the local food delivery startup Jahez which went public in early 2022.

Impact46 led a $24 million investment round in Rasan in November 2021. It is the only publicly announced investment that the startup has raised to date. Impact46 invested in both Jahez and Rasan from its growth fund. Apart from these two, its growth fund is also an investor in Saudi fintech Hala.

It is not clear how much of the $24 million came from Impact46 but it was the only investor mentioned in the statement by Saudi fintech at the time, hinting that it may have been the only investor in the round.

Rasan which owns and runs different insurance and vehicle maintenance platforms including Tameeni, the largest online insurance aggregator of the Kingdom, announced its intention to go public earlier this week. It plans to float 30 percent shares of the company in the listing on the main Saudi stock exchange.

According to the company’s documents, Impact46 is its single largest shareholder owning 18.65 percent stake in the company, which would dilute to 13.06 percent after the IPO. If we assume that Impact46 was the only investor in Rasan’s $24 million round, the company’s valuation at the time would be around $130 million.

Rasan is set to announce the price range for its IPO on Sunday which would give us a good idea of how big of a win this could turn out to be for Impact46 and others involved.

There will be a lockup period of six months from the first day of trading for large shareholders so the price range and even early trading data would only provide an idea of the returns Impact46 could make. The actual returns would depend on when it decides to exit a portion or the entirety of its stake in the firm.

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