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Tadawul - The Saudi Stock Exchange

RCS

22 Nov 2021

The Saudi Tadawul Group, the Saudi stock exchange operator planning to go public, potentially raising up to USD 1.01 billion.

The Saudi stock exchange was founded on 19th March 2007 and has 208 listings with a market cap of approximately USD 2.6 billion.

The size of Tadawul's market capitalization of its listed companies makes it the largest stock exchange in the Arab world. It is supervised by the Arab Federation of Capital Markets, which was founded in 1978, overseeing 17 exchanges and 3 clearing houses, with headquarters in Beirut, Lebanon.

The listing plans of Saudi Tadawul follows massive IPO activity over recent years in the Saudi Arabia Kingdom, such as Saudi Aramco (2222.SE) in 2019, raising USD 29.4 billion, and ACWA Power International in 2021, raising USD 1.2 billion, among others.

The conversion into a holding company and renaming of Saudi Arabis's stock exchange into Saudi Tadawul Group will take place before the listing, according to the Group Chief Executive Khalid al-Hussan.

The target of USD 1 billion may be achieved through a pricing of shares between SAR 95 to 105 (USD25.32-27.99) selling 36 million shares, which is 30% of its total issued shares. The final price may be concluded on the 26th November 2021.

Tadawul's financial advisors, joint global coordinators, book runners and underwriters for their IPO are big name companies; SNB Capital Co, JPMorgan Saudi Arabia and Citigroup Saudi Arabia.

Four subsidiaries can be identified for Tadawul Group: the Bourse Saudi Exchange, Securities Clearing (Muqassa), Technology Services (Wamid) and Depository Businesses (Edaa).

After its public listing, Tadawul will be the regions's third publicly listed stock exchange, following Dubai Financial Market and Boursa Kuwait.

The move to be publicly listed is following a rise in interest of public individual investors into stock markets and the group's intent to diversify its shareholding.


This article is based on publicly available information and given for informational purposes only. It is not intended as legal advice or as a comprehensive analysis of the matters referred to herein.