Derayah Financial Co., based in Saudi Arabia, experienced a first-day share price increase of 30%, reaching 39 riyals (US$10.40) per share.

This increase follows its initial public offering (IPO), which raised 1.5 billion riyals (US$400 million) by selling a 20% stake valued at 7.49 billion riyals (US$2 billion).

The IPO was priced at the top of the marketed range of 30 riyals (US$8) per share and saw significant demand, being oversubscribed 162 times by institutional investors.

HSBC Holdings Plc acted as the sole bookrunner for the IPO. Olayan Saudi Investment Co. invested as a cornerstone investor, acquiring approximately 2% of Derayah’s share capital.

Founded in 2009, Derayah specializes in online brokerage, trading, and asset management services. By June 2024, the company managed assets valued at 15.1 billion riyals (US$4.03 billion).

It reported a net income of 330 million riyals (US$87.97 million)in 2023, achieving a 53% net profit margin with a dividend payout ratio of 69%.