Saudi fintech Rasan files for IPO on Tadawul

Riyadh-headquartered fintech Rasan has announced its intention to go public on Tadawul. The Saudi startup intends to sell a 30 percent stake on the primary Saudi stock exchange, Tadawul, becoming the first startup to list on the exchange. Jahez, which is the first Saudi startup to have gone public in early 2022, listed on Nomu, a parallel local stock exchange with lighter requirements. It has recently announced plans to move to Tadawul though.

Founded in 2016 by Moayad Alfallaj, and a few other industry veterans, Rasan owns and operates different insurance and vehicle maintenance platforms, including Tameeni, Saudi’s first and largest online insurance aggregator. Tameeni enables users to compare, buy, or renew insurance, from over 20 insurance providers, in minutes through its web and mobile apps.

In addition to Tameeni, Rasan also runs Treza, a B2B insurance platform for motor leasing companies; Awalmazad, an online auto auction platform that mainly sells salvage and repossessed vehicles; and Warshti, an on-demand car repair platform for consumers.

Rasan raised $24 million its only funding round to date; in late 2021. The round was led by Impact46’s growth fund, which is now the largest shareholder in the company. Impact46 was also an investor in Jahez, the first Saudi startup to go public.

In 2023, the company recorded $68 million (SAR 256 million) in revenue, reflecting a 58 percent increase compared to the previous year, and attained a net profit of $12 million (SAR 46 million), representing a 33.5 percent year-over-year growth.

Rasan claims to have served over 7.5 million customers to date and holds a 47 percent share of gross written premiums for consumer motor insurance, making it the largest player in the industry.

The Saudi startup plans to offer 22.7 million ordinary shares in its public listing. Of these, 17.4 million will be existing shares, constituting 23 percent of the company’s total shares, while the remaining 5.3 million will be newly issued shares, representing 7 percent of the total shares.

It will announce the price range of the shares on Sunday and initiate the bookbuilding process for institutional investors, which will continue until May 16. Retail investors will then have the opportunity to bid for the shares on May 29 and 30.

Moayad Alfallaj, the co-founder and CEO of  Rasan, commenting on the move, said, “Rasan’s transition into a publicly listed company allows us to unlock our full potential for innovation and development. It will pave the way for exciting product launches and accelerate the realization of our strategic ambitions, aligning with the opportunities in the markets we serve.”

The company has not announced a listing date yet, but it is expected to be after June 6, by which time it will have completed the process of refunding any excess subscription amounts, if applicable.

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