Saudi fintech Rasan goes public on Tadawul, shares surge 30 percent pushing market cap close to $1 billion

Riyadh-based fintech startup Rasan made its public market debut on Saudi Arabia’s Tadawul exchange on June 13, the last trading day before the Eid holidays. The company had initiated its IPO process on May 5 with an intention to float, and the public offering witnessed an exceptionally strong response, getting oversubscribed a staggering 129 times after pricing its shares at the top end of the range (SAR 37 per share). The Saudi firm’s IPO attracted $29 billion worth of orders, while aiming to raise just $224 million through the public listing.

Rasan’s shares soared by the maximum permissible limit of 30% on its first trading session, closing at SAR 48.1 and propelling the fintech’s market cap to SAR 3.65 billion, nearly touching the $1 billion mark.

It is the second Saudi technology firm to go public. Jahez was the first one, which listed on Nomu, a parallel Saudi exchange with lighter requirements, in early 2022. Rasan sold 22.7 million shares, representing 30 percent of its total shares, in its public offering. 17.4 million of these were existing shares and 5.3 million were newly issued shares.

Founded in 2016, Rasan operates Tameeni, Saudi Arabia’s largest online insurance aggregator, enabling users to compare, purchase, and renew insurance policies for vehicles, health, and travel with ease. The startup has also expanded its digital footprint by launching several other online platforms catering to insurance and vehicle maintenance services.

The Saudi fintech raised just $24 million in external funding before its IPO. Impact46, the Saudi VC is the largest shareholder in the firm and has won big with its IPO. It was also the only technology investor in Jahez.

Moayad Alfallaj, co-founder and CEO of Rasan, said: “Rasan’s listing on the Saudi Exchange marks a pivotal moment in our journey, reinforcing our position as a leading InsurTech services provider in the region. The IPO will support Rasan’s robust growth trajectory and continue to drive positive impact in the industry through our cutting-edge solutions.”

“This strategic step allows us to unlock our full potential for innovation and development, and will support the growth of the InsurTech sector in the Kingdom, driving innovation in line with the ambitions of Vision 2030,” he added.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top