Saudi Tadawul Group to launch IPO for 36 million shares on Nov. 21

The Saudi Tadawul Group announced on Sunday that it is floating into public circulation 36 million ordinary shares, which represent 30 percent of the company’s capital of 120 million shares.
The group will proceed with the initial public offering (IPO) to list its ordinary shares in the Kingdom’s Stock Exchange (Tadawul) after obtaining approval from the Capital Market Authority (CMA).

Khaled Al-Hussan, CEO of the Saudi Tadawul Group, said the price range for subscription of Tadawul shares would be announced on Nov. 21.

“Institutional subscription of 90 percent of shares will begin on Nov. 21 while individual subscription of 10 percent shares will start on Nov.30, with the listing taking place during the first week of December,” he said in an interview with Al-Arabiya channel.

“We have achieved SR477 million as net profit for the first nine months of 2021, and the Tadawul Group aims to distribute 70 percent of its profit unless there are exceptional projects. We are committed to the rules of IPO and listing and the rules in force in the market and the offering structure will be available to all investors outside the United States.”

Regarding the profits of the Tadawul Group, Al-Hussan said: “We have completed the transformation process in April, and we own four companies, and the group is still in the process of growth and making profit.

“During the year 2020, its revenues amounted to SR900 million in the first nine months while profit in the first nine months of 2021 reached about SR477 million, compared to SR346 million in the corresponding period of 2020,” he said.

He noted that this means achieving more than 30 percent growth in revenues, and about 28 percent growth in profit.”Tadawul Group revealed last April that it had appointed JP Morgan, Citi Group and the securities arm of the National Bank of Saudi Arabia to arrange its IPO.

“During the coming 12 to 18 months, there will be an exceptional number of companies that will be offered for subscription in the Saudi market.

“The number of companies about which we are carrying out studies is very promising, and we are reviewing more than 30 to 40 applications for listing in the Saudi market,” he said.

Al-Hussan pointed out that the new Wamid Company, a subsidiary of the group, was established to search for complementary opportunities for the company or exceptional opportunities for the growth of the company’s profits.

The Saudi Tadawul Group was established in March 2021, following the transformation of the Saudi Stock Exchange (Tadawul) into a Holding Group structure.

The company’s shares will be listed on the main Saudi Stock Exchange (Tadawul) after completing all the procedures related to the offering and listing with the Capital Market Authority and the Saudi Tadawul.

The Public Investment Fund (PIF) is selling the shares that will be offered. The company’s shares will be offered for public subscription by individual and institutional investors, including foreign financial institutions located outside the US.

The Saudi Tadawul Group includes in its portfolio four wholly owned subsidiaries: the Saudi Tadawul Company, one of the largest financial markets in the world in terms of market capitalization, the Securities Depository Center Company (Edaa), the Securities Clearing Center Company (Muqassa), and Wamid, the applied technology services business and innovation arm of the group.

The IPO aims to reinforce the Saudi capital market’s position as a global market leader by supporting its ongoing development into an advanced and sophisticated capital market,” according to the Saudi Tadawul Group.

“Today’s announcement represents a milestone in the company’s growth process, as well as an important step in consolidating our position as a Saudi economic power and a global investment destination that relies on expanding its services, innovation and development of financial services and products to create value for all stakeholders involved,” said Sarah Al-Suhaimi, chairman of the Board of Directors of Saudi Tadawul Group.