Baker McKenzie has represented HSBC Saudi Arabia as the sole underwriter, financial advisor, bookrunner, global coordinator, and lead manager in the initial public offering (IPO) of Derayah Financial Company ("Derayah") on the main market of the Saudi Exchange (Tadawul). This landmark offering marks a significant achievement for both Derayah and the Saudi capital markets.
Founded in 2009, Derayah is the leading independent digital investment platform in Saudi Arabia, offering clients a unique brokerage offering in local, regional and international markets.
With the approval of the Capital Market Authority (CMA), Derayah offered 49,947,039 ordinary shares, representing 20% of its issued share capital upon completion of the offering. The final offer price has been set at SAR 30 per share, positioned at the top end of the previously announced price range. This has resulted in a market capitalization of c. SAR 7.5 billion (c. USD1 2.0 billion), at the time of listing.
The IPO has generated overwhelming demand with the institutional book-building process resulting in record orders totaling SAR 243 billion (USD 64.8 billion), representing a subscription coverage of approximately 162 times, and a participation of 586,422 retail subscribers, with a total demand of approximately SAR 2.3 billion (USD 600 million), indicating a subscription coverage of approximately 15 times the offered shares in the retail tranche. Derayah’s shares began trading on 10 March 2025.
“We are thrilled to support HSBC Saudi Arabia once again on another highly successful transaction,” said Nadine Nassar, Of Counsel at Baker McKenzie in Saudi Arabia. “This IPO further demonstrates the strength and growing confidence in Saudi Arabia's financial markets. It also marks a significant milestone for Derayah and showcases the great potential of the financial services company.”
The Baker McKenzie team comprised Nadine Nassar, Sara AlNasser and Charles Farnsworth from the London office.
This deal further underscores Baker McKenzie's ongoing commitment to supporting its clients in navigating complex capital markets transactions. Recently, the leading international law firm also advised Nice One Beauty Digital Marketing Company on its successful IPO on the Tadawul Main Market.
1 USD = SAR 3.75