Riyadh-based fintech startup, Rasan, made a remarkable debut on the Saudi Arabia’s Tadawul exchange on June 13, marking the last trading day before the Eid holidays. The company initiated its IPO process on May 5, and the public offering witnessed an overwhelming response, being oversubscribed by an astounding 129 times. The shares were priced at the top end of the range at SAR 37 per share.
Rasan’s IPO attracted a substantial $29 billion worth of orders, far exceeding its target of raising $224 million through the public listing. On its first trading session, Rasan’s shares soared by the maximum permissible limit of 30%, closing at SAR 48.1. This surge propelled the fintech’s market capitalization to SAR 3.65 billion, nearly reaching the $1 billion mark.
As the second Saudi technology firm to go public, Rasan follows the footsteps of Jahez, which listed on Nomu, a parallel Saudi exchange with lighter requirements, in early 2022. Rasan’s public offering comprised 22.7 million shares, representing 30% of its total shares. Of these, 17.4 million were existing shares, while 5.3 million were newly issued.
Founded in 2016, Rasan operates Tameeni, Saudi Arabia’s largest online insurance aggregator, enabling users to compare, purchase, and renew insurance policies for vehicles, health, and travel with ease. The startup has also expanded its digital footprint by launching several other online platforms catering to insurance and vehicle maintenance services.
Prior to its IPO, the Saudi fintech had raised just $24 million in external funding. Impact46, the Saudi venture capital firm, is the largest shareholder in Rasan and significantly benefited from the IPO. Impact46 was also the only technology investor in Jahez.
Moayad Alfallaj, co-founder and CEO of Rasan, commented on the milestone, stating, “Rasan’s listing on the Saudi Exchange marks a pivotal moment in our journey, reinforcing our position as a leading InsurTech services provider in the region. The IPO will support Rasan’s robust growth trajectory and continue to drive positive impact in the industry through our cutting-edge solutions.”
He added, “This strategic step allows us to unlock our full potential for innovation and development and will support the growth of the InsurTech sector in the Kingdom, driving innovation in line with the ambitions of Vision 2030.”
