Rasan to become first Fintech Firm to Offer 22.7 Million Shares on Tadawul

Rasan Information Technology Company, together with its subsidiaries, the leading fintech and insurtech services provider in Saudi Arabia, has announced its intention to proceed with an initial public offering (IPO) and listing of its shares on the Saudi Exchange’s main market Tadawul.

The company received approval from the Capital Market Authority (CMA) on 25 March 2024 for registering its share capital and offering 22.7 million ordinary shares, with a nominal value of $0.27 per share, of the company’s issued shares by way of the sale of 17.4 million existing ordinary shares by its current shareholders in proportion with their existing shareholding.

Rasan will also be issuing 5,300,000 new ordinary shares for public offering through a capital increase. The sale shares represent 23% and the new shares representing 7% of the company’s issued share capital, respectively upon completion of the IPO, totalling 30% of its issued share capital.

The IPO proceeds, after deducting IPO-related expenses, will be distributed to the selling shareholders with the remaining proceeds to be utilised to expand its current operations and products, market and develop new products and finance the general purposes of the Company and its subsidiaries.

Rasan’s IPO comprises an offering of 22.7 million offer shares representing 30% of its issued share capital through the sale of the sale shares and new shares.

The offer shares will be offered for subscription to individual investors, and institutional investors, including participating parties outside the US.

Rasan’s Remarkable Journey

Rasan’s co-founder and CEO Moayad Alfallaj said that his company’s evolution into the leading fintech and insurtech provider in the Kingdom has been a remarkable journey. Its IPO has been made possible by the unwavering guidance of Saudi Arabia’s visionary leadership. Their vision to foster an ecosystem that enables fintech companies to thrive has been pivotal to Rasan’s success, he said.

“Since our inception, Rasan has been dedicated to developing innovative solutions and diverse business models, driving our growth and expanding our suite of services. We have proudly held a leading market share in our sector, reflecting the strength of our insurtech offerings,” Alfallaj explained.

This drive for excellence has positioned Rasan among the 25 fastest growing fintech organisations in the Middle East for two consecutive years in 2022 and 2023. With Rasan’s growth trajectory, they were committed to achieving new milestones and becoming the first fintech company to be listed on the Main Market of the Saudi Exchange, Alfallaj said.

“Rasan’s transition into a publicly listed company allows us to unlock our full potential for innovation and development. It will pave the way for exciting product launches and accelerate the realisation of our strategic ambitions, aligning with the opportunities in the markets we serve. This strategic step will catalyse the evolution of the fintech and insurtech sectors in the Kingdom, driving innovation and advancing Rasan on a global stage in line with the ambitions of Vision 2030,” he added.

Established in 2016, Rasan is a fintech firm focused on insurance and banking sectors across the Gulf serving both retail customers and businesses. Its digital solutions include Tameeni Motor, Tameeni Health, Treza, Awal Mazad, R Solutions, a data analysis product. It has offices in Saudi, the UAE, and Egypt. Tameeni is the “first and largest ins. aggregator in KSA, the company said in the prospectus.