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Trade Arabia
13-03-2025
- Business
- Trade Arabia
Saudi Arabia seeks bids for mineral exploration licences
Saudi Arabia's Ministry of Industry and Mineral Resources has opened pre-qualification applications for the ninth round of exploration license competitions, covering three mineralized belts spanning 24,946 sq km. This initiative is part of the ministry's plan to offer exploration licences for mining sites across over 50,000 sq km in 2025, as announced at the fourth Future Minerals Forum in January. The licensing round is part of a broader strategy to accelerate greenfield exploration and development in the kingdom's mining and mineral sector, maximise its mineral resources valued at $2.5 trillion - and enhance value-added mineral supply chains. The ministry specified that the targeted belts include the Al Naqrah Belt and the Al Sukhaybirah "Al-Safraa" Belt in the Madinah region, as well as the Al-Duwaihi "Nabaitah" Belt in the Riyadh region, reported SPA. These sites contain a variety of precious and base metals, including gold, copper, silver, zinc, and nickel, it stated. The ministry emphasized that this year's exploration licence competitions are fully automated, transparent, and fair for investors. The process consists of three main stages: The first stage is the pre-qualification stage, which commenced at the Future Minerals Forum in January and will continue until early May. The ministry aims to conclude the ninth round of competitions by the end of August. This stage assesses the technical competence of applicant companies, inviting qualified bidders to submit technical expertise proposals and the social and environmental impact management plans, announcing the winners, and granting the exploration license. The ministry has made relevant geological and technical data available on the "Taade'en" electronic platform to ensure equal opportunities among all the competitors, said the report. This step is expected to enhance transparency and efficiency in exploration processes, increase exploration expenditure in the Kingdom, enrich the National Geological Database with additional technical information, create new job opportunities, and promote sustainable economic growth. These efforts align with Saudi Arabia's commitment to developing the mining sector to meet global standards, with a strong focus on environmental sustainability and social responsibility, it stated. Meanwhile, the Ministry of Investment (MOI), in collaboration with the Ministry of Industry and Mineral Resources, launched the second phase of the "Mining Exploration Enablement" program in January. The program, which provides financial support of up to SAR7.5 million per project for companies holding valid exploration licenses for less than five years, aims to support mineral exploration in Saudi Arabia, mitigate risks for exploration companies in their early stages, and encourage investment in the sector, said the SPA report. This is in addition to the incentives stipulated in the Mining Investment Law, which allows for 100% foreign-owned companies and provides funding of up to 75% of capital costs through the Saudi Industrial Development Fund (SIDF), it added. Over the past years, the ministry has tendered more than 10,000 sq km for exploration. The offering of 50,000 sq km in 2025 reaffirms the Kingdom's commitment to creating a transparent and attractive investment environment that supports the growth of the mining sector and stimulates investments in line with Saudi Vision 2030.
Trade Arabia
13-02-2025
- Business
- Trade Arabia
Derayah Financial Company sets final offer price for IPO
Derayah Financial Company, the leading independent digital investment platform in Saudi Arabia, has announced the successful completion of the institutional book-building period for participating parties and setting the final offer price at SAR30 per share for its initial public offering (IPO). On December 25 last year, the Saudi Capital Market Authority had given the go-ahead to the company for registering its share capital and the offering of 49.9 million shares, representing 20% of the Derayah Financial Company's issued share capital. The price range of the Offering had been set between SAR27 and 30 per share. The book-building process started this month (February 2) and ended on February 9. It received an overwhelming response from both local and international investors with the institutional offering being oversubscribed 162 times. The process generated a total value of SAR243 billion ($65 billion) in orders. The SAR30 per share price 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 SAR7.5 billion ($2 billion), with the total size of the offering being SAR1.5 billion ($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 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 IPO. Following completion of the Offering, these 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, it stated. For the IPO, Derayah 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 will act as Receiving Entities for the Individual Investors tranche. On the IPO, Co-Founder and Chairman Taha AlKuwaiz said: "Derayah is 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 SAR243 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," he added.
