Clifford Chance acted for Derayah Financial Company on its SAR 1.5 billion (US$400 million) initial public offering (IPO) on the main market of the Saudi Exchange.
Baker McKenzie represented HSBC Saudi Arabia as the sole underwriter, financial advisor, bookrunner, global coordinator, and lead manager on the deal.
Founded in 2009, Derayah is a digital investment platform in Saudi Arabia, offering investors access to local, regional, and international markets.
Derayah offered 49.95 million shares on Tadawul, representing 20% of its issued share capital.
The offering was priced at SAR 30 per share, the top end of the indicative price range, giving the company an initial market capitalisation of around SAR 7.5 billion (US$2 billion).
A cross-border team of lawyers from both AS&H Clifford Chance and Clifford Chance advised on the transaction. The AS&H Clifford Chance team was led by Riyadh capital markets and regulatory partner Mansoor Alhagban, while the Clifford Chance team was led by Frankfurt capital markets partner George Hacket.
The Baker McKenzie team included counsel Nadine Nassar and Charles Farnsworth, based in the firm’s Riyadh and London offices, respectively.
Nassar said: “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.”
Derayah’s IPO debut is the latest in a line-up of successful listings in the Kingdom.
Baker McKenzie and AS&H Clifford Chance recently advised parties in connection with the IPO of Nice One Beauty Digital Marketing Company on the main market of the Saudi Exchange.
Baker McKenzie acted as legal counsel for Nice One, the first unicorn technology company to list on the Kingdom’s premier exchange, whilst AS&H Clifford Chance represented the financial advisors, bookrunners, underwriters, and lead manager.
