You are here

  • Home
  • 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

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
Short Url

https://arab.news/br7p4

Updated 02 February 2025
Nirmal Narayanan
Follow

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
Updated 02 February 2025
Nirmal Narayanan
Follow

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.

Topics: initial public offerings (IPOs) Saudi Arabia Derayah Financial Co. IPO

Related

Saudi Arabia’s Derayah plans IPO on Tadawul, offering 20% of share capital
Business & Economy
Saudi Arabia’s Derayah plans IPO on Tadawul, offering 20% of share capital
Special Saudi Arabia’s Flyadeal launches operations in Pakistan with inaugural flight from Riyadh to Karachi video
Pakistan
Saudi Arabia’s Flyadeal launches operations in Pakistan with inaugural flight from Riyadh to Karachi

Closing Bell: Saudi main index edges down to close at 11,694

Closing Bell: Saudi main index edges down to close at 11,694
Updated 23 March 2025
Reem Walid
Follow

Closing Bell: Saudi main index edges down to close at 11,694

Closing Bell: Saudi main index edges down to close at 11,694
Updated 23 March 2025
Reem Walid

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 65.55 points, or 0.56 percent, to close at 11,694.77.

The total trading turnover of the benchmark index was SR2.64 billion ($704 million), as 85 of the stocks advanced and 155 retreated.   

On the other hand, the Kingdom’s parallel market, Nomu, gained 13.93 points, or 0.05 percent, to close at 30,535.46. This comes as 36 stocks advanced while 48 retreated.   

The MSCI Tadawul Index lost 10.73 points, or 0.72 percent, to close at 1,479.47.    

The best-performing stock was Al-Babtain Power and Telecommunication Co., whose share price surged 9.98 percent to SR46.30.  

Other top performers included Alujain Corp., whose share price rose 8.65 percent to SR37.70, as well as Arriyadh Development Co., whose share price surged 6.05 percent to SR34.20.

Naseej International Trading Co. recorded the most significant drop, falling 9.58 percent to SR84.

Al-Rajhi Co. for Cooperative Insurance also saw its stock prices fall 4.63 percent to SR136.

Banan Real Estate Co. also saw its stock prices decline 4.31 percent to SR6.22.

On the announcements front, Tam Development Co. declared its annual financial results for the year ending on Dec. 31, 2024. According to a Tadawul statement, the firm reported a net profit of SR30.13 million in 2024, reflecting a 25.77 percent drop compared to 2023. 

The decrease in net profit is primarily attributed to delays in government project awards and budget reviews in the first half of 2024 which affected contract pricing revenue recognition and utilization rates as well as strategic investments in talent acquisition and competitive pricing to secure new logo accounts temporarily compressing margins.

The drop was also linked to higher general and administrative expenses which increased 39 percent due to workforce expansion to support growth.

Tam Development Co. ended the session at SR175.80, down 6.02 percent.

Riyadh Steel Co. has also announced its annual financial results for the year, which ended on Dec. 31, 2024. A bourse filing revealed that the company reported a net profit of SR1.99 million in 2024, reflecting an 82.06 percent drop compared to 2023. This decline is owed to a reduction in selling prices, a decrease in other income, and higher expenses in comparison to the previous year.

Riyadh Steel Co. ended the session at SR2.01, down 0.49 percent.

Middle East Pharmaceutical Industries Co. has announced its annual financial results for the year, which ended on Dec. 31. According to a Tadawul statement, the firm reported a net profit of SR79.85 million in 2024, reflecting a 21.3 percent drop compared to 2023. 

This increase in net profit is primarily attributed to strong revenue growth and a higher gross profit margin, driven by product mix diversification and economies of scale from increased production. Nevertheless, the gain in gross profit was partially offset by higher selling, distribution, and general administrative expenses, which were largely due to ongoing investments in marketing, talent acquisition, and other growth-related initiatives.

Middle East Pharmaceutical Industries Co. ended the session at SR135.40, down 1.34 percent.

Alandalus Property Co. also announced its annual financial results for the year ending Dec. 31, 2024.

A bourse filing revealed that the company reported a net loss of SR31.6 million in 2024, down from an SR36.42 million net profit in 2023. This decline is primarily attributed to a decrease in operating profit resulting from operational losses incurred by some affiliated companies, particularly West Jeddah Hospital, due to the opening and commencement of operations at Dr. Sulaiman Al-Habib Medical Hospital in Jeddah at the end of the first quarter of 2024, along with recorded losses in Al-Jawhara Al-Kubra Co. The net loss is also linked to an increase in general and administrative expenses along with a 31 percent surge in financing costs compared to the previous year.

Alandalus Property Co. ended the session at SR23.00, down 1.13 percent.

Topics: TASI NOMU MSCI stocks

Public firms listed on Muscat bourse report 52.6% surge in profits

Public firms listed on Muscat bourse report 52.6% surge in profits
Updated 23 March 2025
Reem Walid
Follow

Public firms listed on Muscat bourse report 52.6% surge in profits

Public firms listed on Muscat bourse report 52.6% surge in profits
Updated 23 March 2025
Reem Walid

RIYADH: The net profits of public joint companies listed on the Muscat Stock Exchange surged 52.6 percent year on year to reach 1.339 billion Omani rials ($3.48 billion) in 2024.

This increase coincided with the listing of OQ Exploration and Production and OQ Base Industries in 2024, while energy companies recorded improved performance, with some moving from losses to profits, the Oman News Agency reported.

This falls in line with strong growth in Arab stock exchanges in 2024, where trading values surged 58.1 percent to surpass $1.03 trillion.

It also aligns with a 21.3 percent increase in regional trading volumes and a 35.9 percent rise in the number of trades during the year, reflecting a dynamic financial landscape with varied market performances.

Statistics from the Oman News Agency, based on preliminary financial results for around 90 public joint-stock firms with fiscal years ending in December, revealed improved performance across most companies in the banking, industrial, investment, service, and telecommunications sectors.

The data further showed that the total number of companies that reported profits last year was 69, compared to 68 entities that reported profits in 2023, excluding the financial results of funds and firms that were not listed on the stock exchange during 2023.

The figures also indicated that OQ Exploration and Production topped the list of companies with the highest net profits, totaling 326.5 million rials.

Bank Muscat came in second with 225.5 million rials, followed by Sohar International Bank, which came in third with 100.2 million rials.

Omantel ranked fourth after recording net profits at the local level of 69.4 million rials. The National Bank of Oman placed fifth with net profits of approximately 63.1 million rials, followed by OQ Gas Networks, which came in sixth with 47.8 million rials.

The data further showed that Bank Dhofar placed seventh with 43.6 million rials, while Ahli Bank ranked eighth with 41.6 million rials.

Ominvest placed ninth with net profits of an estimated 35.9 million rials, while Oman Arab Bank ranked tenth with net profits of 30.4 million rials.

Preliminary data showed that the losses recorded by public joint-stock companies decreased last year to around 38.1 million rials, compared to losses of 50.6 million rials in 2023. However, the number of firms recording losses last year jumped to 21, compared to 20 companies that recorded setbacks in 2023.

Last year, five companies flipped from losses to profits, including SMN Power Holding, which reported group net profits of 4.5 million rials in 2024, up from 6.4 million rials in 2023. Sohar Power Co. also posted net profits of about 22 million rials, compared to 5.1 million rials the previous year.

Conversely, six companies turned from profits to losses, most notably Leva Group, which recorded losses of 5 million rials in 2024, compared to net profits of 6.3 million rials in 2023, and Oman Refreshments, which recorded group losses of 2.7 million rials last year, compared to a net profit of 6.3 million rials in 2023.

Galfar Engineering and Contracting also recorded a group loss of 3.9 million rials in 2024, compared to a profit of 574,000 rials in 2023.

Topics: Muscat bourse Profit IPO

Riyadh municipality unveils new investment opportunities across key sectors 

Riyadh municipality unveils new investment opportunities across key sectors 
Updated 23 March 2025
MOHAMMED AL-KINANI
Follow

Riyadh municipality unveils new investment opportunities across key sectors 

Riyadh municipality unveils new investment opportunities across key sectors 
Updated 23 March 2025
MOHAMMED AL-KINANI

JEDDAH: Riyadh has unveiled new investment opportunities for 2025, covering commercial, residential, retail, industrial, and leisure projects to boost the city’s economy and development. 

The Riyadh municipality introduced 20 new investment prospects, covering more than 175,000 sq. meters across over 20 sites. These include mixed-use developments, existing retail spaces, mobile sports clubs, and areas allocated for concrete and construction material factories — along with a cafe and ATM setup. 

Investors can access the projects through the Furas online platform, designed as the municipality’s primary hub for real estate and municipal investment opportunities, the Saudi Press Agency reported. 

The initiative is part of a broader strategy to accelerate private sector participation in urban development, aligning with Saudi Arabia’s Vision 2030. 

“This step comes as an extension of the Riyadh municipality’s strategy to enhance the role of the private sector in urban development, by enabling it to participate effectively in developing facilities and services, and achieving integration between government and investment efforts to meet the needs of society,” the SPA report stated.  

“It also contributes to raising the quality of urban life and achieving the goals of the Kingdom's Vision 2030,” it added.  

Contracts for the investment sites range from five to 25 years, covering multiple districts across Riyadh. Key locations include Jarir, Al-Deerah, and Al-Rawdah, alongside Al-Basateen, Al-Qadisiyah, and Al-Jazirah. 

Additional areas feature Al-Hamra, Al-Morouj, and Al-Yamamah, as well as Eastern Suwaidi, Al-Masha’il, Al-Manakh, Badr, and Taybah. 

Investors are invited to review competition requirements and the application process via a dedicated link, with the envelope opening set for May 2025. 

In a parallel push to enhance the capital’s livability, 87 new parks were inaugurated over the last three years — raising the city’s total to over 700, up from 615. The parks cover more than 745,000 sq. meters, featuring nearly 25,000 shrubs and 7,000 trees planted across different districts to ensure equitable access to green spaces. 

The parks now serve as dynamic community hubs, hosting cultural, social, entertainment, and sporting activities. The move underscores Riyadh Municipality’s commitment to improving quality of life, fostering social cohesion, and advancing Vision 2030’s urban sustainability goals. 

With these investments and infrastructure developments, Riyadh is positioning itself as a leading model for vibrant, sustainable urban growth in the region. 

Topics: SaudiVision2030

Global economic growth to average at 3.1% in next 5 years: IMF official 

Global economic growth to average at 3.1% in next 5 years: IMF official 
Updated 23 March 2025
Nirmal Narayanan
Follow

Global economic growth to average at 3.1% in next 5 years: IMF official 

Global economic growth to average at 3.1% in next 5 years: IMF official 
Updated 23 March 2025
Nirmal Narayanan

RIYADH: Global economic growth is expected to average around 3.1 percent in the next five years, below the pre-pandemic level of 3.7 percent, according to an International Monetary Fund official.

Speaking at the China Development Forum in Beijing on March 23, Nigel Clarke, deputy managing director of the IMF, said that total factor productivity internationally, which measures the ability to create more outputs with the same inputs, has been growing at a slower pace since the 2008-09 global financial crisis.

The worldwide growth projections of the IMF indicate that countries in the Middle East are expected to show future financial resilience. 

In January, the UN financial agency said Saudi Arabia’s economy is projected to grow by 3.3 percent in 2025 and 4.1 percent in 2026. 

“Global growth is steady but underwhelming. Our five-year ahead growth forecast remains at 3.1 percent— well below the pre-pandemic average of 3.7 percent,” said Clarke. 

He added: “Patterns of trade and capital flows are shifting. AI (artificial intelligence) is rapidly advancing. Trade is no longer the engine of global growth it used to be. Divergences across countries are widening. And governments worldwide are shifting their policy priorities.” 

Clarke argues that countries should pursue structural reforms to boost productivity and ensure medium-term growth.

He further said that in aging societies— where the share of the working-age population is shrinking— productivity growth plays a vital role in maintaining living standards. 

“It also applies to emerging markets and developing economies trying to close the gap with richer countries. To provide better jobs and a higher standard of living, they too need to ignite productivity growth,” added the deputy managing director.

He added that this productivity growth could be achieved only by innovation, technological advancements, and ample investments in research and development. 

Citing IMF research, Clarke highlighted that productivity growth in advanced economies could increase by 0.2 percentage points a year with a hybrid policy that boosts public research expenditure by a third and doubles subsidies to private research. 

He noted that AI could boost global gross domestic product growth between 0.1 and 0.8 percentage points per year in the medium term, depending on how it is adopted.

Clarke also underscored the necessity of better resource allocation in the future to maintain a healthy global productivity level. 

“The movement of labor and capital toward more productive firms and industries has long been an important source of overall productivity growth. As workers move from farms to factories, for example, their productivity increases dramatically. So too do their income and living standards, with spillovers to the whole economy,” he said. 

According to Clarke, effective measures should be taken to strengthen the private sector, as well as create an environment that could help them thrive. 

“Through our policy advice, lending and capacity development, the IMF has consistently supported countries in establishing macroeconomic and financial stability as a foundation for growth,” said Clarke. 

He added that a new IMF Advisory Council on Entrepreneurship and Growth has been created to help countries develop ideas on easing regulatory barriers, adapting tax systems, and incentivizing long-term savings to boost innovation.

Topics: IMF Forecast

Saudi Arabia’s PIF at forefront as Gulf wealth funds approach $18tn by 2030

Saudi Arabia’s PIF at forefront as Gulf wealth funds approach $18tn by 2030
Updated 23 March 2025
Nirmal Narayanan  
Follow

Saudi Arabia’s PIF at forefront as Gulf wealth funds approach $18tn by 2030

Saudi Arabia’s PIF at forefront as Gulf wealth funds approach $18tn by 2030
Updated 23 March 2025
Nirmal Narayanan  

RIYADH: Saudi Arabia’s sovereign wealth fund and five of its regional counterparts are on track to control $18 trillion in assets by 2030, marking a 50 percent surge from the end of 2024, according to an analysis.  

In its latest report, Deloitte Middle East noted that the region, home to six of the world’s 10 largest sovereign funds, now holds approximately 40 percent of global SWF assets — solidifying its position as a dominant force in the market.  

The study aligns with the latest report from the Sovereign Wealth Fund Institute, which ranks Saudi Arabia’s Public Investment Fund sixth globally, managing $925 billion. The Abu Dhabi Investment Authority leads the Gulf with $1.05 trillion, followed by the Kuwait Investment Authority at $1.02 trillion and the Qatar Investment Authority with $526 billion. 

Julie Kassab, sovereign wealth fund leader at Deloitte Middle East, said: “The Gulf region continues to be the epicenter of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence.” 

She added: “We are witnessing these funds not only expand their geographical footprint but also significantly enhance their internal capabilities, setting new standards for the industry in terms of performance and governance.” 

The report also highlighted that Gulf SWFs maintained an “aggressive investment pace,” deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024. 

Deloitte listed five major players shaping the region’s investment landscape: Saudi Arabia’s PIF, ADIA, Abu Dhabi’s Mubadala, Abu Dhabi Developmental Holding Co., and QIA. 

Globally, the total number of sovereign wealth funds has nearly tripled since 2000, reaching approximately 160-170 funds, with 13 new ones established between 2020 and 2023. 

Asia takes center stage 

Deloitte’s analysis highlights key trends reshaping the regional SWF landscape, with funds increasingly focusing on fast-growing countries outside traditional Western markets. 

The report revealed that Gulf SWFs strategically prioritize Asia, with many establishing new offices throughout the Asia-Pacific region and significantly increasing allocations to high-growth economies, including China and India. 

Wealth funds in the Gulf region were particularly active in China, investing approximately $9.5 billion in the Asian giant during the first nine months of 2024. 

Abu Dhabi Investment Authority and Kuwait Investment Authority ranked among the top 10 shareholders in Chinese A-share listed firms. 

“This represents a strategic opportunity as Western investors reduce their exposure, allowing Middle Eastern funds to leverage their strong political and trade relationships with Beijing,” Deloitte noted. 

The report added that Gulf wealth funds are also eyeing Africa, particularly the mining industry, for new opportunities. 

This year, the UAE and Saudi Arabia have shown a willingness to invest in high-risk extractive ventures in Africa, both directly and through stakes in multinational mining companies. 

This shift coincides with the rise of new investment vehicles, particularly “Royal Private Offices,” which now control an estimated $500 billion in assets. 

Combating challenges 

Wealth funds in the Gulf region are under increasing pressure to sharpen their competitive edge, focusing on internal performance, risk oversight, and investment management to deliver stronger returns, the analysis stated. 

The report noted that many regional wealth funds are becoming more proactive — showing greater openness to divestment, demanding better reporting from portfolio companies, and exerting more influence at the board level.  

The study added that this drive for excellence has intensified competition for human capital among these funds, with soaring demand for experienced national talent. 

“Gulf SWFs now employ an estimated 9,000 professionals across their operations. Gulf funds are offering increasingly attractive packages to senior professionals, particularly those with experience at established funds like Singapore’s Temasek or Canada’s Maple Eight,” Deloitte stated. 

The consulting firm added that Gulf governments are also reassessing their approach to strategic assets. This has led to the creation of new, domestically focused funds designed to co-invest alongside international partners rather than compete directly with established regional players. 

It concluded: “Looking ahead, while geopolitical uncertainties and potential commodity price fluctuations may create headwinds, these pressures could drive greater efficiency and innovation in fund management practices.” 

Topics: SWF Gulf Saudi PIF Investment debt

Related

Egypt’s sovereign fund enters top 50 global wealth list: SWFI  
Business & Economy
Egypt’s sovereign fund enters top 50 global wealth list: SWFI  
Aramco deal pushes Saudi Arabia’s PIF up in global ranking: SWFI
Business & Economy
Aramco deal pushes Saudi Arabia’s PIF up in global ranking: SWFI

Latest updates

Algeria’s Nabil Anane defeats Muay Thai icon Superlek at ONE 172 in Japan
Algeria’s Nabil Anane defeats Muay Thai icon Superlek at ONE 172 in Japan
Ukraine, US teams begin talks in Saudi Arabia
Ukraine, US teams begin talks in Saudi Arabia
Former congresswoman urges limits on PAC donations in US elections
Former congresswoman urges limits on PAC donations in US elections
Hamas says Israeli strike kills political bureau official Salah Al-Bardawil
Hamas says Israeli strike kills political bureau official Salah Al-Bardawil
France’s Dassault says upping Rafale warplane output
France’s Dassault says upping Rafale warplane output

Search form

Print Edition
Read pdf version Subscribe now
© 2025 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.