More than 10 companies in Saudi Arabia are preparing to conduct their initial public offerings on the stock market, while more than 50 companies have submitted applications for listing, indicating the continued wave of subscription activity in the Kingdom.
We have more than 10 IPOs that have been approved, but they are still waiting to build the order book and agree with asset managers to set the listing and offering dates, said Mohammed Al-Rumaih, CEO of the Saudi Stock Exchange (Tadawul) in an interview.
He added that the good thing about these offerings is not only their number, but also their diversity. They are companies from different sectors, different sizes, and at different stages of their life cycle.
The announcements come after a surge in IPO activity in the kingdom, with four companies announcing their offerings in recent weeks, including Al-Fakieh Healthcare Group, whose IPO is set to be the largest in the kingdom in 2024 so far. Covered in less than an hour, the offering aims to raise around SAR 2.86 billion ($763.4 million), exceeding the total listings since the beginning of the year.
Saudi Arabia’s initial public offerings have raised about $700 million since the start of the year, with the largest share being raised by Modern Mills, which raised $314 million in March. The size of the offerings represents a significant increase from the same period last year, when listings were halted in light of the Saudi stock market’s decline. The Saudi stock market index is up 4% year-to-date.
Al-Rumaih, who spoke to Bloomberg Television on the sidelines of the international edition of the Saudi Stock Exchange Forum hosted by Hong Kong, expressed confidence that the liquidity needed to absorb all of these anticipated listings is available.
Regarding the possibility of dual listing of Saudi companies in Hong Kong, or vice versa, he said: We seek to provide appropriate preparation for companies in the event that they decide to do so.
Saudi Arabia's Tadawul Group and Hong Kong Exchanges and Clearing are co-hosting a conference on Thursday as both seek to boost their status as financial hubs.
The Kingdom is also seeking to attract more foreign capital into its financial market, as Saudi Crown Prince Mohammed bin Salman works to diversify the Kingdom’s economy under the Vision 2030 program.
