(Bloomberg) — Saudi Arabian lender Riyad Bank is working with JPMorgan Chase & Co. on a potential initial public offering of its investment banking arm, according to people familiar with the matter.
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Riyad Capital could sell shares to the public as early as mid-2025 at a valuation of around $2.5 billion, the people said, declining to be identified while discussing confidential information. No final decisions have been taken, with details like size and exact timeline still under discussion, according to the people.
Representatives for Riyad Capital and JPMorgan declined to comment.
The kingdom’s third largest lender had said it was weighing a possible IPO of Riyad Capital last year. The Public Investment Fund, the country’s sovereign wealth fund, is the largest shareholder in Riyad Bank.
IPO Pipeline
Last year, companies raised just over $4 billion through new share sales in the kingdom, and the pipeline for 2025 looks robust.
The Saudi regulator recently green-lit a planned IPO by another financial services company, Derayah Financial Co. The online brokerage and trading platform is working with HSBC Holdings Plc on the offering, people with knowledge of the matter said. Derayah is considering seeking a valuation of about $2 billion, according to the people, who asked not to be identified because the information is private.
Representatives for Derayah and HSBC declined to comment.
Technology services firm Ejada Systems Ltd. and developer Umm Al Qura for Development & Construction Co. have also recently received approval to list, while low-cost carrier Flynas has lined up banks for a share sale.
The PIF is also planning several listings of its portfolio companies, including a district cooling company, a medical procurement firm and a port operator. The deals are part of efforts to raise funds to finance Crown Prince Mohammed Bin Salman’s ambitious economic diversification plans.
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