D360 Bank plans to use capital increase proceeds to support the next phase of growth
Derayah Financial Co.’s unit, D360 Bank, said its shareholders approved the board of directors’ to increase capital by 38.89% from SAR 2.1 billion to SAR 2.9 billion, according to a statement to Tadawul. 
D360 Bank is 20.4% owned by Derayah Financial as of March 31, 2026.
Derayah, as part of its long-term and strategic commitment to D360 Bank, intends to inject an investment of SAR 100 million in the capital hike.
After full completion of the capital top-up, Derayah expects its ownership in the bank to reach 16.35%, valued at nearly SAR 980 million based on the bank’s post-money valuation of SAR 6.0 billion ($1.60 billion).
The company said the bank’s capital increase will be carried out through issuing 72.92 million new ordinary shares at an offering price of SAR 20.57 per share, with total subscription proceeds of SAR 1.50 billion.
The bank, upon obtaining the required regulatory approvals, will issue an additional 8.75 million ordinary shares, to be allocated to the employee stock ownership program. These additional shares will be funded by SAR 87.5 million from the capital increase proceeds.
The offering price represents a pre-money valuation of SAR 4.5 billion ($1.20 billion) for the bank on a fully diluted basis, including the employee stock ownership program shares to be issued as part of the capital increase.
Since the D360 Bank investment is accounted for under the equity method, Derayah will not recognize any unrealized gains arising from the bank’s implied valuation in its consolidated financial statements. Accordingly, there will be no impact on the company’s reported earnings or shareholders’ equity.
The proposed investment will be fully funded from Derayah’s internal resources and is not expected to affect the company’s approved dividend policy. This reflects Derayah’s strong financial position, robust capital base, and ability to generate cash flows.
Derayah added that up to 2.26% of its expected 16.35% stake in the bank, as referred to above, has been allocated to eligible employees under the employee stock ownership program designated for employees who contributed to the establishment of the bank, as referenced in the company’s prospectus. Should any of these shares be transferred to eligible employees in accordance with the program’s provisions, Derayah’s ownership in the bank will decrease by a percentage equivalent to the shares transferred.
Since commencing operations in December 2024, D360 Bank has achieved notable growth, reaching 3 million customers and SAR 3 billion in deposits as of April 2026. The bank has also achieved positive unit economics across its core products, reflecting a profitable business model and a clear path toward profitability as it scales.
Derayah said the capital increase proceeds will be used to support the bank’s next phase of growth, with a particular focus on expanding its financing portfolio, enhancing its product offering, and capitalizing on promising opportunities in Saudi Arabia’s retail finance, SME finance, and API banking markets.
Derayah said it considers D360 Bank a strategic partner and a key pillar of its broader ecosystem strategy. Beyond the expected investment merits, the partnership offers promising opportunities to accelerate customer-base growth, expand product distribution, and leverage integration and cross-selling opportunities between the two sides. It also enables Derayah to strengthen its presence in the retail and SME banking sectors, among the fastest-growing financial segments, contributing to diversified growth streams and reinforcing the company’s position within Saudi Arabia’s evolving financial sector.
D360 Bank is deemed a related party under applicable regulatory requirements, given Derayah’s right to appoint more than 30% of the bank’s board members.
The company said it will announce any relevant material developments in due course.
D360 Bank plans to use capital increase proceeds to support the next phase of growth
Derayah Financial Co.’s unit, D360 Bank, said its shareholders approved the board of directors’ to increase capital by 38.89% from SAR 2.1 billion to SAR 2.9 billion, according to a statement to Tadawul.
D360 Bank is 20.4% owned by Derayah Financial as of March 31, 2026.
Derayah, as part of its long-term and strategic commitment to D360 Bank, intends to inject an investment of SAR 100 million in the capital hike.
After full completion of the capital top-up, Derayah expects its ownership in the bank to reach 16.35%, valued at nearly SAR 980 million based on the bank’s post-money valuation of SAR 6.0 billion ($1.60 billion).
The company said the bank’s capital increase will be carried out through issuing 72.92 million new ordinary shares at an offering price of SAR 20.57 per share, with total subscription proceeds of SAR 1.50 billion.
The bank, upon obtaining the required regulatory approvals, will issue an additional 8.75 million ordinary shares, to be allocated to the employee stock ownership program. These additional shares will be funded by SAR 87.5 million from the capital increase proceeds.
The offering price represents a pre-money valuation of SAR 4.5 billion ($1.20 billion) for the bank on a fully diluted basis, including the employee stock ownership program shares to be issued as part of the capital increase.
Since the D360 Bank investment is accounted for under the equity method, Derayah will not recognize any unrealized gains arising from the bank’s implied valuation in its consolidated financial statements. Accordingly, there will be no impact on the company’s reported earnings or shareholders’ equity.
The proposed investment will be fully funded from Derayah’s internal resources and is not expected to affect the company’s approved dividend policy. This reflects Derayah’s strong financial position, robust capital base, and ability to generate cash flows.
Derayah added that up to 2.26% of its expected 16.35% stake in the bank, as referred to above, has been allocated to eligible employees under the employee stock ownership program designated for employees who contributed to the establishment of the bank, as referenced in the company’s prospectus. Should any of these shares be transferred to eligible employees in accordance with the program’s provisions, Derayah’s ownership in the bank will decrease by a percentage equivalent to the shares transferred.
Since commencing operations in December 2024, D360 Bank has achieved notable growth, reaching 3 million customers and SAR 3 billion in deposits as of April 2026. The bank has also achieved positive unit economics across its core products, reflecting a profitable business model and a clear path toward profitability as it scales.
Derayah said the capital increase proceeds will be used to support the bank’s next phase of growth, with a particular focus on expanding its financing portfolio, enhancing its product offering, and capitalizing on promising opportunities in Saudi Arabia’s retail finance, SME finance, and API banking markets.
Derayah said it considers D360 Bank a strategic partner and a key pillar of its broader ecosystem strategy. Beyond the expected investment merits, the partnership offers promising opportunities to accelerate customer-base growth, expand product distribution, and leverage integration and cross-selling opportunities between the two sides. It also enables Derayah to strengthen its presence in the retail and SME banking sectors, among the fastest-growing financial segments, contributing to diversified growth streams and reinforcing the company’s position within Saudi Arabia’s evolving financial sector.
D360 Bank is deemed a related party under applicable regulatory requirements, given Derayah’s right to appoint more than 30% of the bank’s board members.
The company said it will announce any relevant material developments in due course.
