INITIAL PUBLIC OFFERING (IPO)

Entering a new era of growth

Rasan Information Technology Company ("Rasan" or the "Company" or the "Issuer"), together with its subsidiaries (the "Group") announces its intention to offer 30% of its share capital to the public through an IPO and listing its shares on the Main Market of the Saudi Exchange

The IPO of Rasan comprises and offer of 22,740,000 ordinary shares, representing 30% of its share capital through the sale of a mix of existing shares and newly issued shares.

KEY IPO FIGURES

22,740,000

Total offer shares

22,740,000

Total offer shares

30%

of the Company's issued share capital
(after the capital increase)

30%

Of the Company's issued share capital
(after the capital increase)


17,440,000

Existing shares (sale shares)

17,440,000

Existing shares (sale shares)


5,300,000

Newly issued shares

5,300,000

Newly issued shares


100% *

Offer shares will be allocated to
institutional investors.

100% *

Offer shares will be allocated to
institutional investors.

10%

Offer shares to be clawed back and
offered to retail investors

10%

Offer shares to be clawed back and
offered to retail investors


*
In the event that Individual Subscribers subscribe for all of the Offer Shares allocated thereto,the number of Offer Shares allocated to Participating Parties may be reduced to 90% of the total Offer Shares.

* In the event that Individual Subscribers subscribe for all of the Offer Shares allocated thereto,the number of Offer Shares allocated to Participating Parties may be reduced to 90% of the total Offer Shares.

MESSAGE FROM THE LEADERSHIP

Co-founder and CEO's Message

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.

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.

Moayad Alfallaj
Co-founder and CEO of Rasan

COMPANY IN NUMBERS

Redefining the Kingdom’s FinTech and InsurTech market

1st& Largest

insurance aggregator in KSA by Gross Written Premiums (GWP)with market shares of ~47% for Tameeni Motor and ~62% for Treza

1st & Largest

insurance aggregator in KSA by Gross Written
Premiums (GWP)with market shares of ~47% for Tameeni Motor and ~62% for Treza

SAR 14.4 Billion

GWP (excluding VAT) and

SAR 14.4 Billion

GWP (excluding VAT) and


12.3 million

insurance policies sold 2020A-Q3 2023G

12.3 million

insurance policies sold 2020A-Q3 2023G


50%

of motors insured in Saudi Arabia

50%

of motors insured in Saudi Arabia


SAR 256 million

Revenue in 2023

SAR 256 million

Revenue in 2023

28%

adjusted EBITDA margin in 2023G

28%

adjusted EBITDA margin in 2023G



332 %

Net Profit CAGR
(2020-2023)

332 %

Net Profit CAGR
(2020-2023)

~81 %

Revenue CAGR
(2020-2023)

~81 %

Revenue CAGR
(2020-2023)


7.5 million

customers served in the Kingdom since the launch
of operations in 2017G and up to 30 September
2023G

7.5 million

customers served in the Kingdom since the launch
of operations in 2017G and up to 30 September
2023G


3.5 million

Average monthly visits (2023G) with more than
90 integration points and 800 data points for data
ingestion as of 2023G

3.5 million

Average monthly visits (2023G) with more than
90 integration points and 800 data points for data
ingestion as of 2023G

AWARDS AND ACHIEVEMENTS

INVESTMENT HIGHLIGHTS

The Group benefits from strong strategic drivers fuelling the expansion of the FinTech market in the Kingdom:

  • Highly Attractive Macroeconomic Trends
    • Strong socio macroeconomic tailwinds supporting further developments of the FinTech market in the Kingdom, the largest economy in GCC which is expected to grow at a CAGR of 4.6% between the years 2023G and 2027G.
  • Increasing Importance of Insurance via Vision 2030 Targets
    • Large government-led digital transformation initiatives backed by the Kingdom’s Vision 2030, fueling industry-wide acceleration into a digital economy.
  • Historical Under-penetration of Insurance in the Kingdom
    • o Insurance penetration in the Kingdom, defined as Gross Written Premium as % of GDP, stands at 1.3% in 2022 which is considerably lower relative to regional market (UAE: 2.5%, Bahrain: 1.7%) and even lower compared to the global average of 6.6%; thereby presenting an opportunity for future growth in the sector.
  • Supportive Regulatory Tailwinds
    • The Insurance Authority introduced a number of enforcement measures to enforce adoption of insurance products across different verticals.
  • Increasing Role of Aggregators in Insurance Distribution
    • Aggregators are quickly becoming the preferred method of distribution for insurance products fueled by increased digital adoption, superior customer experience, ease of comparability and transparent pricing.

  • 1st and largest Insurtech aggregator in KSA by Gross Written Premiums (GWP), the Group has served over 7.5 million customers in the Kingdom since the launch of its operations in 2017G and up to the 30 September 2023G.

  • Rasan has gained a dominant market share in the Kingdom across its product offerings and particularly within the motor insurance and leasing segments, benefiting from first mover advantages and its ability to scale.

    1. Tameeni Motor’s market share of the total volume of personal motor insurance in terms of GWP increased from 30% in 2020G to C.47% in 2023G.

    2. Treza’s market share in terms of GWP increased from 1% in 2020G to 62% in 2023G.

  • The Group is well-positioned to duplicate the success story of market leadership in the motor insurance segment across other existing and new products and in particular Tameeni Health

    The Group also aims to disrupt the corporate health segment through a digital proposition in partnership with health insurance companies.

  • Best-in-class proprietary tech stack built in-house through dedicated teams across three geographies: Saudi Arabia, UAE and Egypt.

  • The Group’s proprietary modern platform supercharges operations and fosters innovation through development of new products, continuous upgrading of its platforms and user experience, as well as streamlining operations through superior reliability and unmatched scalability.

  • Cutting-edge market and customer insights through leveraging artificial intelligence and actuarial capabilities.

  • Through its unique service offering and value proposition, Rasan thrives to provide the best user-centric experience for its customers and partners through its seamless and distinctive platforms.

    1. As of 30 September 2023G, the Group has partnerships with 24 insurance companies, 22 banks, leasing companies, data providers and several payment portals.

    2. The high reliability and attractive innovative features of the Group’s platforms and products promote high levels of customer and partners’ adoption and retention.

  • The Group has a strong track record of delivering consistent and rapid financial growth thanks to a significant increase in volume of policies sold and the ramp-up of newly launched business lines.

    1. The Group’s GWP grew at a CAGR of 69% from SAR 1.4 billion in the year 2020G to SAR 6.6 billion in the year 2023G.

    2. The Group’s revenue increased by 5.9 times from SAR 43.4 million in the year 2020G to SAR 256.2 million in the year 2023G achieving a CAGR of 81% during the same period.

  • In addition to the significant increase in revenues, the Group consistently achieved profitability during the years 2020G to 2023G

    1. The Group’s EBITDA grew at a CAGR of 131% from SAR 5.2 million in 2020G to SAR 63.6 million in the year 2023G for an Adjusted EBITDA margin of 27.7% in the year 2023G.

    2. The Group’s net income grew at a CAGR of 332% from SAR 0.6 million in the year 2020G to SAR 46.0 million in the year 2023G for an Adjusted Net Income margin of 20.8% in the year 2023G.

    3. This solid cash flow generation, along with a a robust balance sheet with a net cash position, is underwritten by a financial framework that balances investment for strong profitable growth and return of capital to shareholders.

  • Protect:

    1. Protect the current market position in the KSA motor market

    2. Maintain focus and agility against an evolving landscape

    3. Target high margin and value-add products to customers

  • Enhance:

    1. Replicate success of Tameeni Motor in Tameeni Health

    2. Enhance operational and financial performance

    3. Build proven artificial intelligence models capable of leveraging data from various platforms / products

  • Grow:

    1. Expand presence across the insurance value chain, name through product development, pricing & underwriting solutions (with no underwriting risk), in addition to claims management

    2. Expand into adjacent insurance verticals

  • Innovate:

    1. Leverage in-house tech stack and capabilities to differentiate revenue streams into coherent digital markets

  • Diversify:

    1. Expand across FinTech verticals and potentially into new GCC markets

    2. Strategic inorganic growth through strategic acquisitions

  • The Group is led by one of its founding shareholders and is managed by a highly experienced leadership team in the insurance and technology space who has over 100 years of combined executive management experience and FinTech expertise.

  • The Group’s management is supported by a strong corporate governance structure and has strong local market knowledge, regulatory expertise and a deep commitment to maintaining the highest standards of excellence within the Group.

OUR LEADERSHIP

Decades of experience across the insurance value chain

IPO TIMELINE

05 May 2024

Intention to Float

12 May 2024

Price Range Announcement and institutional Book Building

22 May 2024

Final price announcement

29 May 2024

Retail Subscription Period

04 June 2024

Announcement of the final allocation of the Offer Shares

06 June 2024

Refund of excess subscription amounts (if any)

TBC

Listing Day

05 May 2024

Intention to Float

12 May 2024

Price Range Announcement and institutional Book Building

22 May 2024

Final price announcement

29 May 2024

Retail Subscription Period

04 June 2024

Announcement of the final allocation of the Offer Shares

06 June 2024

Refund of excess subscription amounts (if any)

TBC

Listing Day

FAQ

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 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).

To subscribe to the IPO, please contact one of the selling agents, Saudi Fransi Capital and Morgan Stanley Saudi Arabia, serving as our financial advisors, bookrunners and underwriters and can advise you on the investment process.

The prospectus can be downloaded from the “Downloads” section of this webpage. It contains detailed information to support you in making an informed decision.

We also recommend consulting with your personal financial advisor for any investment related queries.

Subscription to the offer is available to: (1) Participating Parties: This tranche comprises the parties entitled to participate in the book-building process as specified in the Instructions for Book Building Process and Allocation Method in Initial Public Offerings; and (2) Individual Subscribers: This tranche comprises Saudi Arabian nationals, in addition to any non-Saudi natural person who is resident in the Kingdom and any GCC natural person, provided they have a bank account with one of the Receiving Entities and an active stock portfolio with an affiliated Capital Market Institution.

The prospectus can be downloaded from the “Downloads” section of this webpage. It contains detailed information to support you in making an informed investment decision.

The final price of the share will be set after the institutional book-building process is complete.

FINANCIAL ADVISORS

Tameeni
Saudi Fransi Capital

rasan.ipo@fransicapital.com.sa

www.sfc.sa

Tameeni
morgan stanley saudi arabia

lneqsy@morganstanley.com

www.morganstanley.com

RECEIVING BANKS

Tameeni
Saudi Fransi Bank

Fransiplusadmin@alfransi.com.sa

www.alfransi.com.sa

Tameeni
Al-Rajhi Bank

contactcenter1@alrajhibank.com.sa

www.alrajhibank.com.sa

Contact Information

Saudi Fransi Capital

Lead Manager

+966 11 2826666

rasan.ipo@fransicapital.com.sa

FGS Global

Media And Communications Advisor

+966(11)4013030

RasanIPO@fgsglobal.com