Saudi brokerage firm Derayah Financial sets IPO price range at up to $8 per share

Saudi brokerage firm Derayah Financial sets IPO price range at up to $8 per share
Derayah Financial’s planned IPO aligns with Saudi Arabia’s broader push to develop its fintech sector. Shutterstock
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Updated 02 February 2025
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Saudi brokerage firm Derayah Financial sets IPO price range at up to $8 per share

Saudi brokerage firm Derayah Financial sets IPO price range at up to $8 per share
  • Offering comprises 49.95 million shares — equivalent to 20% of the company’s issued share capital
  • It is expected to raise between SR1.35 billion and SR1.50 billion

RIYADH: Saudi Arabia’s independent digital investment platform Derayah Financial Co. has set the price range for its initial public offering at SR27 ($7.20) to SR30 per share, valuing the company at up to SR7.49 billion. 

The institutional book-building period will run from Feb. 2— 9, with the final offer price determined thereafter, the company said in a statement. 

The offering, comprising 49.95 million shares — equivalent to 20 percent of the company’s issued share capital — is expected to raise between SR1.35 billion and SR1.50 billion. 

Derayah Financial’s planned IPO aligns with Saudi Arabia’s broader push to develop its fintech sector, which has seen significant growth in recent years. 

The Financial Sector Development Program aims to boost fintech’s economic contribution, enhance financial inclusion, and drive innovation in digital financial services. 

The IPO consists of a partial sale by existing shareholders, with the proceeds distributed among them. The Public Investment Fund-backed company said it would not receive any funds from the offering. 

The shares will be listed on the Saudi Exchange following regulatory approvals. According to the release, current shareholders will retain an 80 percent stake in the company post-listing, with a 24-month lock-up period applying to at least 60 percent of the stock held by major stakeholders, including executives and board members. 

The company said the offering is open to institutional investors, including qualified foreign institutions, investment funds, and Gulf Cooperation Council-based investors. 

It added that up to 10 percent of the offering, or 4.94 million shares, will be allocated to individual investors, with the remainder reserved for institutional buyers. If retail demand is strong, the institutional allocation could be reduced to 90 percent of the total offering. 

Retail subscription is scheduled to open on Feb. 20 and close on Feb. 22, with final share allocation set for Feb. 27, the release added. 

Derayah Financial is among the leading independent firms in brokerage revenues and holds the third-largest market share in Saudi Arabia’s digital investment sector, with assets under management totaling SR15.1 billion as of June 30. 

Saudi Arabia has seen a surge in IPO activity in recent years, leading the GCC region by raising $4.1 billion across 42 offerings, according to a report from the Kuwait Financial Center, also known as Markaz. 

The report also said that IPO proceeds in the GCC increased by 23 percent compared to 2023, reaching a total of $13.2 billion across 53 public offerings last year.


Oil Updates — crude up on weak dollar but tariff concerns cap gains

Oil Updates — crude up on weak dollar but tariff concerns cap gains
Updated 59 min 19 sec ago
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Oil Updates — crude up on weak dollar but tariff concerns cap gains

Oil Updates — crude up on weak dollar but tariff concerns cap gains

SINGAPORE: Oil prices edged up on Wednesday, buoyed by a weaker dollar, but mounting fears of a US economic slowdown and the impact of tariffs on global economic growth capped gains.

Brent futures rose 51 cents, or 0.7 percent, to $70.07 a barrel at 7:30 a.m. Saudi time, while US West Texas Intermediate crude futures gained 52 cents, or 0.8 percent, to $66.77 a barrel.

Despite the weakening economic outlook, oil held steady in a positive position, said Daniel Hynes, senior commodity strategist at ANZ. “That’s a sign that near-term demand for crude remains strong.”

The dollar index, which fell 0.5 percent to fresh 2025 lows on Tuesday, boosted oil prices by making crude less expensive for buyers holding other currencies.

“Easing dollar counters the bearish bias of global economic slowdown, although this seems short-lived,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

US stock prices, which also influence the oil market, fell again on Tuesday, adding to the biggest selloff in months, with investors rattled over increased tariffs on imports and souring consumer sentiment.

“Overall sentiment remains fragile despite a slight bounce in today’s session,” said Yeap Jun Rong, market strategist at IG.

“For now, oil market sentiments are likely to stay contained, with tariff developments still lacking clarity and persistent concerns over US growth risks,” Yeap added.

US President Donald Trump’s protectionist policies have shaken global markets. He has imposed, then delayed tariffs on major oil suppliers Canada and Mexico, while also raising duties on China, prompting retaliatory measures.

Over the weekend, Trump said a “period of transition” was likely and declined to rule out a US recession.

In supply, US crude oil production is poised to set a larger record this year than prior estimates, at an average 13.61 million barrels per day, the US Energy Information Administration said on Tuesday.

Investors are waiting for US inflation data due on Wednesday for clues on the path of interest rates. They also are closely monitoring OPEC+ plans. The producer group has announced plans to increase output in April.

In the US, crude oil stockpiles rose by 4.2 million barrels in the week ended March 7, market sources said, citing American Petroleum Institute figures on Tuesday.

Markets now await government data on US stockpiles due on Wednesday for further trading cues. (Reporting by Nicole Jao in New York and Jeslyn Lerh in Singapore; Editing by Himani Sarkar and Jamie Freed)


Aramco Ventures invests in Ucaneo to develop Germany’s largest direct air capture plant

Aramco Ventures invests in Ucaneo to develop Germany’s largest direct air capture plant
Updated 11 March 2025
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Aramco Ventures invests in Ucaneo to develop Germany’s largest direct air capture plant

Aramco Ventures invests in Ucaneo to develop Germany’s largest direct air capture plant

RIYADH: Aramco Ventures, the investment arm of Saudi Aramco, has joined a funding round for German startup Ucaneo, which is developing the country’s largest direct air capture facility. 

The backing follows Ucaneo’s €6.75 million ($7.3 million) seed round in September 2024, the company said in a statement. It did not disclose the value of its investment. 

Headquartered in Berlin, Ucaneo is focused on advancing DAC technology to remove carbon dioxide from the atmosphere efficiently and at scale. 

DAC is gaining traction as industries and governments seek scalable solutions to reduce emissions and meet global climate targets.

“Direct Air Capture, if achievable at a competitive cost, could play a crucial role in global decarbonization. Ucaneo’s approach, leveraging novel solvents and renewable energy-driven electrochemistry, has the potential to deliver a cost-effective and highly efficient solution,” said Bruce Niven, executive managing director at Aramco Ventures. 

He added: “We are excited to partner with Ucaneo’s innovative team to advance this technology toward large-scale adoption.” 

The facility, set to open in the first half of 2026, is expected to bring down DAC costs below €300 per tonne of CO2, positioning it among the most cost-competitive solutions globally, Ucaneo said. 

The company has also launched an industrial pilot capturing 30-50 tonnes of carbon dioxide annually, making it one of Germany’s largest DAC test sites. 

“We are thrilled to welcome Aramco Ventures as one of our investors. For us, it was essential to find a partner who not only supports our scaling efforts but is also deeply committed to playing a leading role in the energy transition,” said Florian Tiller, co-founder and CEO of Ucaneo. 

“Only through impactful scale and strong partnerships can innovative technology developers like Ucaneo enable the world to build a real net-zero economy,” he added. 

Aramco Ventures’ backing of Ucaneo comes just days after it led a $30 million Series A round for US-based climate tech startup Spiritus, alongside Khosla Ventures, Mitsubishi Heavy Industries America, and TDK Ventures. Spiritus aims to scale its DAC technology to curb emissions from data centers and industrial construction without stalling growth. 

The investment underscores Aramco’s increasing focus on carbon capture and emissions reduction technologies as part of its broader strategy to support the energy transition. 


GCC firms maintain financial stability despite regional tensions: Moody’s

GCC firms maintain financial stability despite regional tensions: Moody’s
Updated 11 March 2025
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GCC firms maintain financial stability despite regional tensions: Moody’s

GCC firms maintain financial stability despite regional tensions: Moody’s

RIYADH: Companies in the Gulf Cooperation Council have maintained strong credit qualities despite the economic uncertainty caused by geopolitical tensions, according to Moody’s Investors Service.

A report from the firm stated that a significant number of GCC firms continue to benefit from strong balance sheets, low leverage, and ample cash reserves, ensuring financial stability and resilience.

Outstanding debt was steady at $410 billion last year, and is likely to remain at this level in 2025, Moody’s added. 

Heightened geopolitical tensions remain the main source of near-term credit risk in the region. Sound economic and operating conditions, robust business models, effective operating execution and financial discipline, were also cited as key reasons for the stability seen by many companies.

Mikhail Shipilov, vice president and senior analyst at Moody’s Ratings, said: “This translates into good financial performance, strong credit metrics and solid liquidity, which are likely to be sustained over the next 12 months.” 

He added: “Many companies have features that mitigate geopolitical risks, which have had a limited effect so far on credit quality. These features include geographic diversification of operating assets, alternative supply routes or a focus on domestic markets.”

Many GCC companies have adopted strategic measures to mitigate risks from geopolitical uncertainties, according to the report.

Several companies have diversified their operational presence, securing stability through international markets. Alternative supply routes and a focus on domestic demand provide an additional buffer against potential disruptions, Moody’s said.

While Qatari firms remain relatively more exposed due to their asset concentration, their strong sovereign backing and liquidity reserves continue to reinforce financial resilience.

Macroeconomic conditions remain favorable for domestic-driven sectors, including real estate, telecommunications, and utilities.

Economic diversification initiatives, particularly in Saudi Arabia and the UAE, continue to drive non-hydrocarbon growth.

The UAE’s economy is forecast to have expanded by 3.8 percent in 2024, with 4.8 percent growth in 2025, supported by a buoyant real estate sector and strong foreign investment.

Saudi Arabia is set to see 3.3 percent GDP growth in 2025 and 4.8 percent in 2026, bolstered by large-scale infrastructure projects and a growing tourism sector.

Export-oriented companies, especially in the oil, gas, and petrochemical industries, continue to demonstrate resilience, according to the report.

Saudi Aramco stands out with its “immense operational scale, low production costs and downstream integration,” according to the report.

QatarEnergy benefits from vast, low-cost gas reserves and an expanding liquefied natural gas portfolio, securing its role as a major player in the energy sector.

Regional petrochemical companies leverage cost-efficient feedstock and advanced facilities to maintain a competitive edge in global markets.

The credit outlook for GCC corporates remains stable, supported by sound financial policies and government-led economic initiatives.


Saudi Arabia, South Korea sign deal to boost cooperation in space sector

Saudi Arabia, South Korea sign deal to boost cooperation in space sector
Updated 11 March 2025
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Saudi Arabia, South Korea sign deal to boost cooperation in space sector

Saudi Arabia, South Korea sign deal to boost cooperation in space sector

RIYADH: The Saudi Space Agency has entered into a new partnership with the Korean Aerospace Administration to boost cooperation in the space sector.

A memorandum of understanding was signed at the SSA’s headquarters in Riyadh, marking a significant step in strengthening bilateral ties between Saudi Arabia and South Korea in space exploration and technology development.

The agreement is in line with the Saudi Space Agency’s broader mission to support the Kingdom’s Vision 2030 goal of becoming a global leader in space exploration.

It also seeks to contribute to the nation’s scientific and economic growth through innovation and technological advancements in space.

The MoU comes as part of Saudi Arabia’s growing commercial space sector, which is primarily driven by the private sector.

Over 250 companies are currently operating in the country, emphasizing the strong involvement of the private sector. Additionally, more than 20 government agencies regulate and support the industry, according to recent findings by SpaceTech in Gulf.

Mohammed Al-Tamimi, CEO of the Saudi Space Agency, emphasized that the agreement reflects the Kingdom’s ongoing commitment to enhancing international cooperation in space.

He stated that the SSA values such global partnerships, viewing them as essential for advancing technological capabilities and growing the space economy. Al-Tamimi underscored that the MoU will foster collaboration by integrating the expertise of both Saudi and Korean space professionals.

The terms of the agreement outline key areas of collaboration, including the development of deep space technologies, manned flight programs, satellite launches, and payloads. The MoU also sets out to strengthen capabilities in space sciences and engineering, facilitate the exchange of knowledge, and enhance expertise in advanced space applications.

Moreover, the agreement seeks to advance space research and technical development, while fostering an environment conducive to investment in the space sector. This partnership is expected to contribute to the growth of the space economy and improve the global standing of both Saudi Arabia and South Korea.

In September, Al-Tamimi led the Saudi delegation to the fifth G20 Space Economy Leaders Meeting in Foz do Iguacu, Brazil, where he highlighted Saudi Arabia’s advancements in space exploration.

He also emphasized the Kingdom’s commitment to using space technology for sustainable development and climate change mitigation. During the meeting, he participated in discussions on innovation, entrepreneurship, and the role of space in addressing global challenges, further showcasing the Saudi Space Agency’s efforts to improve infrastructure, attract investment, and leverage space technology for sustainable progress.


Closing Bell: Saudi main index closes in red at 11,718

Closing Bell: Saudi main index closes in red at 11,718
Updated 11 March 2025
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Closing Bell: Saudi main index closes in red at 11,718

Closing Bell: Saudi main index closes in red at 11,718

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the second consecutive day on Tuesday as it shed 27.67 points or 0.24 percent to close at 11,717.96. 

The total trading turnover of the benchmark index was SR7.70 billion ($2.05 billion), with 122 stocks advancing and 116 declining. 

Saudi Arabia’s parallel market Nomu also shed 268.15 points to close at 30,763.22. 

The MSCI Tadawul index declined by 0.25 percent to 1,483.35. 

The best-performing stock on the main market was Riyadh Cables Group Co. The company’s share price increased by 10 percent to SR129.80. 

The share price of Batic Investments and Logistics Co. also edged up by 6.34 percent to SR2.85.

Al-Baha Investment and Development Co. also saw its stock price rising by 5.88 percent to SR0.36. 

Conversely, the share price of Arabian Contracting Services Co. declined by 5.12 percent to SR129.80. 

On the announcements front, Mohammed Hadi Al Rasheed and Partners Co. said that its net profit for 2024 reached SR80.74 million, representing a rise of 80.58 percent compared to 2023. 

In a Tadawul statement, the company said that the rise in net profit was driven by an increase in sales and customers amid expansion in line with the company’s strategy.

Despite posting an increase in profit, the share price of Mohammed Hadi Al Rasheed and Partners Co. declined by 9.04 percent to SR142.80. 

Twareat Medical Care Co. said that its net profit witnessed a rise of 65.98 percent year on year to reach SR23.5 million. 

The healthcare firm added that its overall revenue also rose by 23.97 percent year on year in 2024, driven by improved sales strategies, new service contracts in areas like NEOM, Jubail, and Jafurah, and expanding medical services for existing clients.

Twareat Medical Care Co.’s board of directors also recommended dividends at SR0.25 per share for 2024. 

The share price of  the company edged up by 6.53 percent to SR22.50. 

Arabian Centers Co., also known as Cenomi Centers said that the firm’s net profit for 2024 stood at SR1.22 billion, representing a decline of 18.44 percent compared to 2023. 

In a Tadawul statement, Cenomi Centers revealed that its overall revenue reached SR2.34 billion in 2024, marking a year on year rise of 4.01 percent. 

It also announced that its board of directors has decided to pay a dividend of SR0.37 per share for the third quarter of 2024. 

The share price of Cenomi Centers edged up by 1.29 percent to SR20.36. 

Walaa Cooperative Insurance Co. said that it witnessed a net profit of SR64.30 million in 2024, representing a 56.55 percent decline compared to 2023. 

The insurance firm’s share price declined by 3.53 percent to SR18.04.