RIYADH, Saudi Arabia: Rasan Information Technology Company (“Rasan” or the “Company” or the “Issuer”) and together with its subsidiaries (the “Group”), the leading FinTech and InsurTech services provider in the Kingdom of Saudi Arabia (the “Kingdom”), today announces its intention to proceed with an initial public offering (“IPO” or the “Offering”) and the listing of its shares (“Shares”) on the Saudi Exchange’s Main Market.

On 25 March 2024, the Capital Market Authority (“CMA”) announced its approval of the Company’s application for registering its share capital and Offering 22,740,000 ordinary shares, with a nominal value of 1 SAR per share, of the Company’s issued shares by way of (i) the sale of 17,440,000 existing ordinary shares (the “Sale Shares”) by the Company’s current shareholders in proportion with their existing shareholding (the “Selling Shareholders”), and, (ii) the issuance of 5,300,000 new ordinary shares (the “New Shares”) (referred to with the Sale Shares as (the “Offer Shares” and each as an “Offer Share”) for public offering through a capital increase. The Sale Shares represent 23% and the New Shares represent 7% of the Company’s issued share capital, respectively, upon completion of the Offering, totalling 30% of the Company’s issued share capital (after issuance of the New Shares and the Company’s capital increase).

The Offering proceeds after deducting IPO-related expenses will be distributed to the Selling Shareholders pro rata based on their shareholding in the Sale Shares, with the remaining proceeds to be distributed to the Company to expand its current operations and products, market and develop new products and finance the general purposes of the Company and its subsidiaries. 

Offering overview

  • The Company’s IPO comprises an offering of 22,740,000 Offer Shares representing 30% of the Company’s issued share capital (after the Company’s capital increase) through the sale of the Sale Shares and New Shares.
  • The Offer Shares will be listed and traded on the Main Market of the Saudi Exchange following the completion of the IPO and listing formalities with the CMA and the Saudi Exchange.
  • The Offer Shares will be offered for subscription to individual investors (the “Individual Subscribers”) and institutional investors (the “Participating Parties”), including Participating Parties outside the United States in accordance with Regulation S under the US Securities Act of 1933, as amended (the “Securities Act”).
  • A maximum of 22,740,000 ordinary shares, representing 100% of the Offer Shares, to be initially allocated to Participating Parties.
  • The Financial Advisors (as defined below) may, in coordination with the Company, reduce the number of the Offer Shares allocated to the Participating Parties to 20,466,000 ordinary shares, representing 90% of the Offer Shares, to accommodate for the Individual Subscribers’ demand.
  • A maximum of 2,274,000 ordinary Offer Shares, representing 10% of the Offer Shares, will be allocated to the Individual Subscribers.
  • The final price of the Offer Shares will be determined by the Selling Shareholders and the Company, in consultation with the Financial Advisors (as defined below), following the book-building process, and prior to commencement of the subscription period for Individual Subscribers.

Company overview

  • The Group is one of the leading FinTech players in Saudi Arabia, and is a premiere innovator and disruptor in the insurance industry.
  • The Group attributes its success to multiple factors, including but not limited to, relentless pursuit of innovation through leveraging in-house tech stack, capitalizing on a massive and growing Target Addressable Market supported by secular tailwinds, cementing its place as the trusted partner for customers and insurance companies, as well as attractive financial model with strong unit economics backed by founder-led management team with strong track record of innovation and execution. See Key Investment Highlights section below for further details.
  • As a home-grown pioneer in the FinTech and InsurTech industries, the Group is guided by a well-crafted and transformative countrywide vision and benefiting from the Financial Sector Development Program (FSDP) targets under Vision 2030.
  • The Group’s evolving portfolio of companies includes InsurTech companies such as Tameeni, which provides motor, SME Health, travel and medical malpractice insurance services as aggregators.
  • On the FinTech side, the Group’s portfolio includes Treza, an insurance policy management solution for leasing companies and banks, Awal Mazad, an end-to-end car auction platform, and R Solutions, which provides business intelligence and predictive modelling tools for insurance and leasing portfolio management.
  • The Group leverages secular trends of accelerated FinTech disruption in Saudi Arabia, with the country being the largest and fastest growing economy in the region and a Total Addressable Market (TAM), which is expected to expand 4.5x between 2022G to 2027G.
  • It has an undisputed leading market position and is well-positioned to extend its leadership and achievements into other segments building on its brand strength, digital capability, scale, partnerships and superior data analytics.
  • Its resilient operating model is backed by a comprehensive end-to-end offering across the insurance value-chain, covering areas from lead generation to distribution, pricing and underwriting, claims management, and repair.
  • The Company has a proven track record of growth and profitability, supported by an attractive financial model with strong unit economics.
  • The high reliability and attractive innovative features of the Group’s platforms and products promote high levels of customer and partners’ adoption and retention, allowing it to partner with 24 insurance companies, 22 banks and leasing companies, several data providers and payment portals, and serve more than 7.5 million customers as of 30 September 2023G.
  • A founder-led management team with global experience and unique track record of growth, innovation and execution.

Rasan in numbers

  • The Group owns Tameeni, the first and largest insurance aggregator in KSA by Gross Written Premiums (“GWP”) with market shares of ~47% for Tameeni Motor and ~62% for Treza
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  • A cumulative SAR 14.4 billion of GWP and 12.3 million policies sold over 2020G-2023G
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  • Around 3.5 million average monthly visits (2023G) with more than 90 integration points and 800 data points for data ingestion as of 2023G
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  • Revenue of SAR 256 million as of 2023G with a CAGR of 81% over 2020G-2023G
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  • Adjusted EBITDA margin of 28% and Adjusted Net Income Margin of 20.8%, respectively, in 2023G

Moayad Alfallaj, Co-founder and CEO of the Company said: “Rasan’s evolution into the leading FinTech and InsurTech provider in the Kingdom has been a remarkable journey. Our IPO has been made possible by the unwavering guidance of our visionary leadership. Their vision to foster an ecosystem that enables FinTech companies to thrive has been pivotal to our success. I would also like to thank our regulators for the continuous support, progressive thinking, and collaboration, all of which enabled us to succeed locally and regionally.”

“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. This drive for excellence has positioned us among the 25 fastest growing FinTech organizations in the Middle East for two consecutive years in 2022 and 2023. With our growth trajectory, we are committed to achieving new milestones and becoming the first FinTech company to be listed on the Main Market of the Saudi Exchange,” Alfallaj continued.

Alfallaj added, “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 realization of our strategic ambitions, aligning with the opportunities in the markets we serve. This strategic step will catalyze 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.”

For more information, visit: https://www.rasan.co/, https://ipo.rasan.co/