The Saudi market is expected to witness a rise in IPOs in the second half of this year after two important developments in the past few days.
Ades Holding, the oil and gas driller backed by the Public Investment Fund, and SAL Saudi Logistics, were both granted approval to sell 30% stakes to the public, the Kingdom’s Capital Market Authority announced. The Ades deal could raise about $1 billion, making it one of the largest Saudi offerings of the year, Bloomberg reported.
Ades Holding and SAL Saudi Logistics will float 338.71 million shares and 24 million shares, respectively.
SAL Saudi Logistics is active in providing integrated logistics services, and is present in all airports in the Kingdom. Its main operations are based in four major airports: Riyadh, Jeddah, Dammam and Madinah.
SAL had separated from the Saudi Airlines Cargo Company (Saudia Cargo) and became an independent entity in December 2019.
Salem Bajaja, professor of economics at the University of Jeddah, told Asharq Al-Awsat that the Saudi market witnessed in the first half of 2023 several IPOs, pointing to a remarkable increase in demand by Saudi and Gulf citizens.
He added that the market would see new offerings in the second half of the year, mainly due to the large turnout of individuals and institutions that registered in previous IPOs.
“The Gulf markets are also witnessing many public offerings, which confirm that the Arab Gulf region is attractive for investment, whether from within the Gulf Cooperation Council or from other countries,” he stated.
