Riyadh-based venture capital firm Impact46 is gearing up for its second Initial Public Offering (IPO) with the impending Tadawul listing of local fintech company Rasan. This follows Impact46’s previous success as an investor in the local food delivery startup Jahez, which went public in early 2022.
In November 2021, Impact46 led a significant $24 million investment round in Rasan, marking the sole publicly announced investment received by the fintech startup to date. The VC firm invested in both Jahez and Rasan from its growth fund, which also includes investments in Saudi fintech Hala.
While the exact portion of the $24 million investment contributed by Impact46 remains undisclosed, the firm was the sole investor mentioned in Rasan’s statement at the time, suggesting it may have been the sole participant in the round.
Rasan, the parent company behind various insurance and vehicle maintenance platforms, including Tameeni, the Kingdom’s largest online insurance aggregator, recently announced its intention to go public. The company plans to offer 30 percent of its shares in the IPO on the main Saudi stock exchange.
According to documents from the company, Impact46 holds the title of Rasan’s single largest shareholder, with an 18.65 percent stake, which is expected to dilute to 13.06 percent following the IPO. If Impact46 was indeed the sole investor in Rasan’s $24 million funding round, the company’s valuation at that time would have been approximately $130 million.
The upcoming announcement of the price range for Rasan’s IPO, scheduled for Sunday, will provide insights into the potential gains for Impact46 and other stakeholders. However, a six-month lockup period for large shareholders from the first day of trading means that actual returns will depend on when Impact46 decides to sell a portion or all of its stake in Rasan.
As Impact46 prepares for another milestone with Rasan’s IPO, the outcome of the listing is poised to have significant implications for the firm’s investment portfolio and the wider fintech landscape in Saudi Arabia.