Latest news with #Derayah
Zawya
30-04-2025
- Business
- Zawya
Saudi market shows resilience in Q1 2025 despite global volatility: Report
RIYADH — Saudi Arabia's stock market showed resilience in the first quarter of 2025 despite global volatility, with the Tadawul All Share Index (TASI) finishing the period nearly flat at -0.1%, according to Riyad Capital's latest market report. The outlook for the remainder of the year remains positive, underpinned by expected earnings growth, steady IPO momentum, and robust non-oil economic activity. Riyad Capital forecasts low-to-mid single-digit growth for the Saudi market in 2025. The anticipated recovery will be supported by strong earnings from banks, telecom, media, and technology (TMT) sectors, healthcare, and newly listed firms. The analysts expect two interest rate cuts in the latter half of the year to further lift investor sentiment and market activity. Although turnover dropped by 34% year-on-year in 1Q25 to SR5.9 billion per day, sentiment is projected to recover in H2 2025. The market currently trades at a forward price-to-earnings (P/E) ratio of 14.8x, offering a 39% discount to its five-year average — making it attractively valued relative to peers. The IPO pipeline continues to gain momentum. In the first quarter alone, three companies — Derayah, Entaj, and Masar — were listed on the main market, raising nearly SR4 billion collectively. The report highlighted that listings span diverse sectors including manufacturing, financial services, and aviation. The parallel Nomu market saw six IPOs, with a total offered value of SR228.7 million. While the Nomu index slipped 1% in the quarter, investor appetite remains healthy as companies increasingly use it as a stepping stone to the main market. Telecom and banking sectors drove positive attribution to index performance, while energy and utilities acted as drags. Among top gainers for Q1 were SRMG, Anaam, and Red Sea Global, each recording sharp rebounds from their 52-week lows. On the flip side, companies like Masar and Dar Al Arkan saw double-digit declines from their previous highs. The sector performance also painted a mixed picture: media and entertainment surged 15%, utilities gained 13%, while real estate management and development dropped 9%, and banks fell 4%. Notably, large-cap stocks outperformed small- and mid-caps during the quarter. Saudi Arabia's growing presence in emerging markets is evident from its increased weight in the MSCI Emerging Markets Index — from 2.5% in 2019 to 4.2% in 2025. The Kingdom now trades at a 39% P/E discount to its five-year average while offering a 3.9% dividend yield, further enhancing its investment appeal. Globally, Saudi stocks slightly outperformed developed and emerging markets, with TASI down just 0.1% compared to a -2% drop in developed markets and a 2% gain in EMs. Inflation in the Kingdom is forecast to remain contained at 2.5% in 2025. GDP growth is estimated at over 3%, with non-oil sectors expected to expand more than 4%. The population increase, particularly from rising expatriate numbers, is also likely to support demand across housing, services, and consumer goods. The report highlighted challenges in the oil sector amid soft crude prices. Riyad Capital's in-house Brent crude forecast stands at $68/bbl for 2025. Meanwhile, geopolitical and trade uncertainties — such as the U.S.'s sweeping 10% import tariff and additional levies on China and Europe — have already affected market sentiment globally. Saudi exports remain heavily skewed toward Asia, with China and India accounting for 15% and 9% of total exports, respectively. The UAE is a key non-oil export destination, absorbing 23% of that segment. On April 6, TASI experienced a sharp 6.8% drop, marking the 14th time in 15 years that it has endured a 20% drawdown. Historically, such declines have been followed by positive six-month returns over 75% of the time, with an average gain of 12%. Moreover, weak first quarters have often preceded full-year gains for TASI in eight of the past 10 years. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Gulf Business
10-03-2025
- Business
- Gulf Business
Derayah Financial debuts on Saudi Exchange after $400m IPO
Image: Getty Images Saudi Arabia's Derayah Financial Company began trading on the Main Market of the Saudi Exchange on Monday, following the successful completion of its initial public offering (IPO), which raised approximately SAR1.5bn ($400m). The IPO saw the sale of 49.95 million ordinary shares, representing 20 per cent of the company's issued share capital, through a partial sale by existing shareholders. The offering was priced at 30 riyals per share, the top end of the indicative price range, giving the company an initial market capitalisation of around SAR7.5bn. Derayah, an independent digital investment platform, is trading under the ticker symbol 4084. Derayah IPO saw strong demand from investors The offering was met with strong demand from institutional and retail investors. Institutional investors, who were allocated 90 per cent of the offered shares, generated an order book worth SAR243bn, equating to a subscription coverage of 162 times the shares available in this tranche. The retail investor tranche, comprising 10 per cent of the offering, saw participation from 586,422 individual investors, generating demand worth SAR2.3bn and achieving a subscription coverage of 15 times. Taha AlKuwaiz, co-founder and chairman of Derayah, described the listing as a 'historic moment' for the company. 'Since our establishment in 2009, Derayah has been committed to empowering individuals to build their wealth by simplifying the investment process. The overwhelming interest in our IPO is a testament to the confidence investors have in our business model and growth strategy,' AlKuwaiz said in a statement. Saudi Arabia's capital markets expansion The kingdom has seen a surge in IPO activity as companies look to capitalise on strong investor appetite and a buoyant stock market. The HSBC Saudi Arabia acted as the sole financial advisor, bookrunner, global coordinator, lead manager, and underwriter for the IPO.
Zawya
10-03-2025
- Business
- Zawya
Derayah Financial Company announces listing and commencement of trading on the Main Market of the Saudi Exchange
RELATED TOPICS IPO RELATED COMPANIES Brunswick Group HSBC Saudi Arabi Derayah Derayah Riyadh - Derayah Financial Company (' Derayah ' or the ' Company ' or the ' Issuer '), the leading independent digital investment platform in Saudi Arabia (the ' Kingdom ' or ' KSA '), today listed its shares on the Main Market of the Saudi Exchange following the successful completion of its Initial Public Offering (the ' IPO ' or the ' Offering '). Derayah is now trading under the ticker symbol: 4084. A total of 49,947,039 ordinary shares were sold in the Offering (' Offer Shares '), representing 20% of the Company's issued share capital, through a partial sale by the Company's current shareholders in proportion with their existing shareholdings (the ' Selling Shareholders '). The IPO was priced at ^30 per share, the top end of the price range, with 90% of the Offer Shares allotted to Participating Parties and 10% to Individual Investors. This implies a market capitalization at listing of c.^7.5 billion (c. USD[1] 2.0 billion), with the total size of the IPO being c.^1.5 billion (c. USD 400 million). The book building process saw significant demand from a wide range of local and international institutional investors, generating an order book worth ^243 billion (USD 65 billion), reflecting subscription coverage of 162x the total offered shares. Similarly, the individual investor tranche witnessed subscriptions from 586,422 retail subscribers, worth a total demand of ^2.3 billion (USD 600 million), reflecting a subscription coverage of approximately 15x the offering shares in this tranche. Taha AlKuwaiz, Co-Founder and Chairman of Derayah, said: 'Today marks a truly historic moment for Derayah as we commence trading of our shares on the Main Market of the Saudi Exchange. Since it was established in 2009, Derayah has been driven by a singular vision: to empower individuals to build their wealth by simplifying the process of investing. In doing so, we have combined a purpose-built technology platform, cutting-edge investment solutions, specialized expertise, and a steadfast commitment to our clients to build Derayah as it is today – Saudi Arabia's leading independent digital investment platform. We are proud of the role we are playing in achieving the national objectives of the Financial Sector Development Program and Vision 2030 as the Kingdom's capital markets continue to grow and evolve. The overwhelming interest in our IPO from a wide array of institutional and individual investors is a testament to their confidence in our business model and growth strategy. As we move forward, we remain committed to enhancing our brokerage leadership, expanding our asset management business and further advancing our digital wealth management offerings through continuous innovation. On behalf of the Board of Directors, I would like to extend my deepest gratitude to the entire Derayah team for their unwavering dedication to making this IPO, and indeed this Company, the success it is today. I am excited to welcome our new shareholders to Derayah and look forward to shaping the next chapter of Derayah's growth together.' Enquiries Sole Financial Advisor, Bookrunner, Global Coordinator, Lead Manager and Underwriter HSBC Saudi Arabia Mohammed Fannouch Managing Director, Co-Head of Investment Banking Ramez Halazun Head of Equity Capital Markets derayahipo@ Investor and Media Enquiries Derayah Ghida Obeid Head of Investor Relations Brunswick Group Jamil Fahmy Partner derayah@ The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed by any person for any purpose on the information contained in this announcement or its accuracy, fairness or completeness. The information in this announcement is subject to change. Neither the Company nor the Financial Advisor and their respective affiliates and other advisors undertake to provide the recipient of this announcement with any additional information, or to update this announcement or to correct any inaccuracies, and the distribution of this announcement shall not be deemed to be any form of commitment on the part of the Company, shareholders, the Financial Advisor to proceed with the Offering or any transaction or arrangement referred to therein. This announcement has not been approved by any competent regulatory authority. The contents of this announcement are not to be construed as legal, financial, investment or tax advice. The Offering and the distribution of this announcement and other information in connection with the Offering may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes must inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America. This announcement is not an offer for sale of securities of the Company, directly or indirectly, in or into the United States. The Offer Shares may not be offered or sold in the United States unless registered under the US Securities Act of 1933, as amended (the ' Securities Act '), or offered in a transaction exempt from, or not subject to, the registration requirements of the Securities Act. The Company has not registered and does not intend to register any portion of the Offer Shares under the Securities Act or the laws of any state in the United States or to conduct a public offering of any securities in the United States. Copies of this announcement are not being, and may not be, distributed, forwarded or otherwise sent, directly or indirectly, in or into the United States. This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy, the Offer Shares referred to herein to any person in the United States, Australia, Canada, South Africa or Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The offer and sale of the Offer Shares has not been and will not be registered under the applicable securities laws of Australia, Canada, South Africa or Japan. Subject to certain exceptions, the Offer Shares may not be offered or sold in Australia, Canada, South Africa or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, South Africa or Japan. There will be no public offer of the Offer Shares in the United States, Australia, Canada, South Africa or Japan. In the European Economic Area (the " EEA"), this communication is only addressed to and directed at persons in member states of the EEA who are "qualified investors" within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (as amended) (" Qualified Investors"). In the United Kingdom, this communication is only addressed to and directed at persons who are "qualified investors" within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (as amended), which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, who are also: (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the " Order"); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order; or (iii) are other persons to whom it may otherwise lawfully be communicated (all such persons referred to in (i), (ii) and (iii) together being " Relevant Persons"). This communication must not be acted or relied on (i) in the United Kingdom, by persons who are not Relevant Persons and (ii) in any member state of the EEA by persons who are not Qualified Investors. Any investment activity to which this communication relates (i) in the United Kingdom is available only to, and may be engaged in only with, Relevant Persons; and (ii) in any member state of the EEA is available only to, and may be engaged only with, Qualified Investors. This announcement is being distributed subject to the provisions of the Rules on the Offer of Securities and Continuing Obligations (' OSCO Rules ') issued by the CMA, and should not result in any binding undertakings to acquire shares or subscribe in the Offering. This announcement is for information purposes only and under no circumstances shall constitute an offer or invitation, or form the basis for a decision, to invest in any securities of the Company. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. Investors may only subscribe in the Offer Shares on the basis of the CMA approved Arabic language prospectus issued and published by the Company (the ' Prospectus '). The information in this announcement is subject to change. In accordance with Article 31(d) of the OSCO Rules, copies of the Prospectus will be available on the websites of the Company at Tadawul at the CMA at and the Financial Advisor at This announcement is not an offer document for the purposes of the OSCO Rules and should not be construed as such. The CMA and the Saudi Exchange do not take any responsibility for the contents of this announcement, do not make any representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this announcement. This announcement may include statements that are, or may be deemed to be, ' forward-looking statements '. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "aim," "anticipate," "believe," "can," "consider," "could," "estimate," "expect," "forecast," "intend," "may," "ought to," "potential," "plan," "projection," "seek," "should," "will," "would," or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth or strategies. Many factors could cause the actual results to differ materially from those expressed or implied by any such forward-looking statements or contained in projections, including, among other things, risks specifically related to the Company and its operations, the development of global economic and industry conditions, and the impact of economic, political and social developments in Saudi Arabia. Forward-looking statements speak only as of the date they are made. Each of the Company, and the Financial Advisor and their respective affiliates expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statements contained in this announcement whether as a result of new information, future developments or otherwise. There is no guarantee that the Offering will occur and you should not base your investment decisions on the Company's intentions in relation to the Offering. This announcement does not constitute a recommendation concerning the Offering nor any declaration or undertaking by any means. Acquiring Offer Shares to which this announcement relates may expose an investor to a significant risk of losing the entire amount invested. Persons considering investment should consult an investment advisor or an authorized person specializing in advising on such investments. The Financial Advisor is acting exclusively for the Company and no-one else in connection with the Offering. They will not regard any other person as their respective client, nor for providing advice in relation to the Offering, the contents of this announcement or any transaction, in relation to the Offering and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients, arrangement or other matter referred to herein. The Financial Advisor is acting exclusively for the Company and no-one else in connection with the Offering and it will not regard any other person as its client, nor for providing advice in relation to the Offering, the contents of this announcement or any transaction, in relation to the Offering and will not be responsible to anyone other than the Company for providing the protections afforded to its clients, arrangement or other matter referred to herein. The contents of this announcement have been prepared by and are the sole responsibility of the Company. Neither the Financial Advisor nor any of its affiliates, directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith. In connection with the Offering, the Financial Advisor and any of its affiliates, may take up a portion of the Offer Shares in connection with the Offering as a principal position and in that capacity may retain, purchase, sell, offer to sell for their own accounts such Offer Shares and other securities of the Company or related investments in connection with the Offering or otherwise. References in the Prospectus, once published, to the Company's shares being issued, offered, subscribed, acquired, placed or otherwise dealt in should be read as including any issue or offer to, or subscription, acquisition, placing or dealing by, the Financial Advisor and any of its affiliates acting in such capacity. In addition, the Financial Advisor and any of its affiliates may enter into financing arrangements (including swaps or contracts for difference) with investors in connection with which the Financial Advisor and any of its affiliates may from time to time, acquire, hold or dispose of securities. The Financial Advisors do not intend to disclose the extent of any such investment or transactions otherwise than in accordance with any legal or regulatory obligations to do so.
Arab News
18-02-2025
- Business
- Arab News
Derayah Financial surpasses market growth in Saudi brokerage, asset management, CEO says
RIYADH: Saudi investment firm Derayah Financial saw its assets under management soar to SR17 billion ($4.53 billion) in 2024 as it outpaced growth across the sector in the Kingdom, according to its CEO. Speaking to Arab News at the Capital Markets Forum 2025, Mohammad Al-Shammasi revealed that this rise to a 70 percent year-on-year growth, ranking the company among the top independent firms in Saudi brokerage revenues, with the third-largest market share. Saudi Arabia's asset management industry was set for growth in the second half of 2024 and into 2025, with AUM increasing 13.5 percent year over year to exceed $250 billion by mid-2024, according to a Fitch Ratings report released in October. The Kingdom has the largest asset management industry in the Gulf Cooperation Council, the fifth-largest in the Organisation of Islamic Cooperation, and the second-largest public Islamic funds market globally. 'The overall size of the market is actually growing at a very decent growth rate. So, if you look at retail brokerage or digital brokerage, it is historically growing at a 9 percent CAGR year after year,' he said, adding: 'On the asset management side, that has been growing at around 14 percent year after year.' Oversubscribed IPO Al-Shammasi also discussed Derayah's recent initial public offering, which was 162 times oversubscribed, underscoring the firm's strong market position. 'This is a great testament to the company's performance over the past few years,' he said. Founded 17 years ago as a digital challenger in capital markets, Derayah has grown into Saudi Arabia's third-largest brokerage on of the the largest independent brokers in the region. The IPO allows shareholders to sell 20 percent of the company's shares in a secondary transaction, with 90 percent allocated to corporates and institutions and 10 percent to retail investors. 'We think this will give us huge credibility in the market,' Al-Shammasi said, adding that the transaction could also pave the way for more fintech companies to list on the Saudi stock exchange. The CEO emphasized the strong demand for Derayah's IPO from investors across Asia, Europe, and the US. 'We have seen investors from all over the world submitting bids for our IPO,' he noted. Al-Shammasi further assured that Derayah is well-funded for the near future, with a debt-free balance sheet and a track record of generous dividend distributions. 'The company does not really need any capital in the near term to continue its strategy and growth plans,' he said. 'We have a perfect environment to raise money here in the Kingdom, and I'm more than happy to tap the market if we need it,' Al-Shammasi added. The CEO also revealed that Derayah has partnered with Alpaca, a significant player in international brokerage, to cater to the growing local fintech sector. The partnership aims to provide fintechs in Saudi Arabia with a localized version of Alpaca's services while facilitating international investors' access to the Saudi market. 'Alpaca operates a lot of brokerage houses, and we believe this partnership will pave the way for international investors to come and trade in the local market,' he explained. The Capital Markets Forum 2025, hosted by Saudi Tadawul Group, aims to bring together policymakers, business leaders, and industry experts to discuss trends shaping the Kingdom's capital markets and position Saudi Arabia as a key player in the global financial ecosystem.
Zawya
14-02-2025
- Business
- Zawya
Derayah Financial Company announces the final offer price for its IPO
The institutional book-building process garnered total orders of SAR 243 billion from local and international investors The institutional offering was approximately 162 times oversubscribed, indicating the strong level of demand from institutional investors The subscription period for Individual Investors starts on Thursday, 20 February 2025G and ends on Saturday, 22 February 2025G Riyadh - Derayah Financial Company (' Derayah ' or the ' Company ' or the ' Issuer '), the leading independent digital investment platform in Saudi Arabia (the ' Kingdom ' or ' KSA '), today announces the successful completion of the institutional book-building period for Participating Parties and setting the final offer price for its initial public offering (the ' IPO ' or ' Offering '). The Final Offer Price has been set at SAR 30 per share, which is at the top end of the previously announced price range for the IPO. The Final Offer Price implies a market capitalization of the Company at listing of c. SAR 7.5 billion (c. USD 2.0 billion), with the total size of the offering being c. SAR 1.5 billion (c. USD 400 million). Taha AlKuwaiz, Co-Founder and Chairman of Derayah, said: 'We are incredibly delighted with the demand from institutional investors, and I am pleased to say that we've had overwhelming interest from investors in KSA, the GCC, and further afield. The fact that the books were covered within minutes of the start of book-building, and that the total demand exceeded SAR 243 billion is a testament to our position as the leading independent digital investment platform in Saudi Arabia. We are excited for what lies ahead and look forward to delivering on our vision by driving innovation, creating value, and contributing to the Kingdom's diversification agenda.' The subscription period for retail investors (' Individual Investors ') will start on Thursday, 20 February 2025G and end on Saturday, 22 February 2025G. For more information, please visit Background to the Offering On 25 December 2024G, the Capital Market Authority (the ' CMA ') approved the Company's application for registering its share capital and the Offering of 49,947,039 ordinary shares (' Offer Shares '), representing 20% of the Company's issued share capital, by way of a partial sale by the Company's current shareholders in proportion to their existing shareholding (the ' Selling Shareholders '). The Price Range (' Price Range ') of the Offering had been set between SAR 27 and SAR 30 per share. The book-building process started on Sunday, 2 February 2025G and ended on Sunday, 9 February 2025G. The process generated a total value of SAR 243 billion in orders from local and international investors, meaning that the institutional offering was 162 times oversubscribed. The Final Offer Price of the Offering has been set at SAR 30 per share, implying a market capitalization at listing of c. SAR 7.5 billion (c. USD 2.0 billion). The total size of the offering is c. SAR 1.5 billion (c. USD 400 million). The Offer Shares will be listed and traded on the Main Market of the Saudi Exchange following the completion of the IPO and listing formalities with the Capital Market Authority (' CMA ') and the Saudi Exchange, with the date to be announced at a later stage. The Selling Shareholders collectively own the majority of the Company's Shares prior to the Offering. Following completion of the Offering, the Selling Shareholders will collectively own 80% of the Company' share capital. The net proceeds of the Offering will be distributed to the Selling Shareholders in proportion to their respective ownership of the Offer Shares. The Company will not receive any part of the Offering Proceeds. After listing, at least 60% of the Company's shares shall be subject to a lock-up period of 24 months from the date of the start of trading of the Company's shares on the main market. All shareholders holding 3% or more of the Company's share capital, as well as directors and senior executives who hold shares in the Company will be subject to this lock-up period (as described in the published Prospectus). New shareholders will not be subject to the lock-up period. All Offer Shares have been offered to Participating Parties, with a claw back to Individual Investors of up to 10% of the offered Shares. With respect to the Offering, the Company has appointed HSBC Saudi Arabia as sole financial advisor, bookrunner, global coordinator, lead manager and underwriter. Derayah Financial Company, Alinma Investment Company, Alistithmar Capital, Aljazira Capital, Alkhabeer Capital, Al Rajhi Capital, ANB Capital, BSF Capital, GIB Capital, Riyad Capital, SAB Invest, Sahm Capital, SNB Capital, and Yaqeen Capital act as Receiving Entities (collectively, the ' Receiving Entities ') for the Individual Investors tranche. Individual Investors wishing to subscribe to the Offer Shares must submit their subscription requests electronically through the websites and platforms of the Receiving Entities that provide this service to subscribers, or through any other means provided by the Receiving Entities through which the Individual Investors will be able to subscribe to the Company's shares during the Offering Period.
