Riyadh - Mubasher: The extraordinary general meeting (EGM) of D360 Bank, in which Derayah Financial Company holds a 20.4% ownership stake as of 31 March 2026, approved the board’s capital hike proposal.
The bank’s capital will increase by 38.89% to SAR 2.91 billion from SAR 2.10 billion, according to a bourse disclosure.
D360 will issue 72.91 million new ordinary shares at an offer price of SAR 20.57 per share, generating a total subscription proceeds of SAR 1.49 billion.
Subject to obtaining the required regulatory approvals, the bank also intends to issue an additional 8.75 million ordinary shares under its employee stock ownership plan (ESOP), funded by SAR 87.50 million from the capital raise proceeds.
The offer price implies a pre‑money valuation of SAR 4.50 billion ($1.20 billion) for the bank on a fully diluted basis, including the ESOP pool to be created as part of the capital increase.
Derayah plans to participate in the capital increase with an investment of SAR 100 million. Following the transaction, its ownership stake is expected to stand at 16.35%.
Based on the implied post-money valuation of approximately $1.60 billion, Derayah’s investment in D360 would be valued at around SAR 980 million.
As the injected investment is accounted for under the equity method, it will not recognize any unrealized valuation gains arising from the transaction in the company’s consolidated financial statements. Hence, the capital increase is not expected to have any impact on reported earnings or shareholders’ equity.
The proceeds from the capital hike will be used to support the bank’s next growth phase, including expanding its lending portfolio, enhancing product offerings, and capturing opportunities in Saudi Arabia’s consumer finance, SME lending, and API banking segments.
Since commencing operations in December 2024, D360 has reached 3 million customers and SAR 3 billion in deposits as of April 2026.
Last year, Derayah Financial recorded 9.85% lower consolidated net profits at SAR 400.16 million, compared to SAR 443.90 million in 2024.
