Shares of Saleh Abdulaziz Al-Rashed & Sons Company (TADAWUL:1324), which operates in the mining and building materials sector, recorded a strong rise during its first trading session in the Riyadh market on Wednesday, defying the atmosphere of regional tension resulting from Iranian missile and drone strikes in the Gulf region as the war with the United States and Israel entered its twelfth day.
The stock surged by as much as 20% to reach SAR 54.20, compared to its listing price of SAR 45 set on February 9, before later paring its gains to trade at around SAR 51.80. Trading in the stock was also briefly suspended during the first 20 minutes of the session due to the sharp fluctuations.
The offering price was set more than two weeks before the outbreak of military action, reflecting the different circumstances under which the company entered the market compared to the current geopolitical reality.
Subscription details and strength of institutional demand
The company’s shareholders made approximately 251 million riyals, equivalent to 67 million dollars, from the sale of 5.58 million outstanding shares representing about 30% of the company’s capital.
The institutional segment saw strong demand, being oversubscribed 67.7 times, resulting in a company valuation of approximately 837 million riyals at the time of listing.
These figures indicate that investors continue to be interested in investment opportunities in the Saudi market despite regional fluctuations, especially in sectors related to infrastructure and industry.
The impact of the war on Gulf markets
Gulf stock markets have seen a sharp shift in performance since the start of Iranian missile and drone attacks on targets in the region, in addition to the near-halt to shipping traffic through the Strait of Hormuz.
Despite these challenges, the Saudi Tadawul All Share Index has managed to achieve gains of nearly 2% since the outbreak of the war, supported by rising oil prices.
The rise in crude oil prices also contributed to supporting the shares of leading companies, most notably Saudi Aramco, which helped the general index maintain a relatively positive trend.
The impact of the attacks varied across the countries of the region.
Saudi Arabia has suffered fewer direct hits compared to the UAE, which has been targeted by more than 1,700 Iranian missiles and drones, most of which were intercepted.
In contrast, the stock markets in Dubai and Abu Dhabi faced clear pressures after a period of strong performance during 2025, supported by the booming real estate and banking sectors.
These attacks also tested the UAE’s status as a safe haven for investment and tourism, a status that has been strengthened since the coronavirus pandemic with the influx of new residents.
The impact of the conflict on initial proposals
Shares in Parkin, the parking operator, have fallen by about 13% since the conflict began, despite it being one of the most prominent IPOs during 2024 amid rapid population growth in Dubai.
The Middle East IPO market had been slowing down even before the outbreak of war, due to concerns about valuation levels and increased competition with other global markets.
Saleh Abdulaziz Al-Rashed & Sons is the only listing on the Saudi main market since the beginning of this year.
Expectations of new listing deals
Despite the slowdown in IPO activity, several companies in the region are preparing to list their shares on the financial markets this year.
The list of potential offerings includes major deals such as Emirates Global Aluminium and Saudi contracting company Mutlaq Al-Ghuwairi, according to media reports.
These plans indicate that companies continue to be interested in turning to financial markets to finance expansion despite the uncertainty imposed by geopolitical conditions.
Company overview and financial performance
Saleh Abdulaziz Al-Rashed & Sons Company was established in 1975 and operates in the fields of building materials, mining and industrial spare parts within the Kingdom of Saudi Arabia.
The company’s results showed strong growth in its financial performance, with revenues increasing by 23% during 2025 to reach 739.5 million riyals.
Net profit also rose by 54% to reach 91.7 million riyals, reflecting improved operational efficiency and increased demand for the company’s products in the local market.
