Saudi Arabia’s Capital Market Authority (CMA) revealed there are currently 15 applications for new listings in the Saudi stock market (Tadawul) awaiting approval.
CMA Chairman Mohammed El-Kuwaiz said that about 15 companies have submitted requests to list their shares on the main market and the Nomu Parallel Market.
“It looks quite busy over the upcoming period,” he said.
In an interview with Euromoney, Kuwaiz explained that the CMA aims to help investors receive additional support and facilitate new listings in the Saudi market.
The facilities provided by the authority and the existing market governance motivated companies for listing, the chairman added.
Tadawul saw five IPOs in 2019, including oil giant Saudi Aramco, its biggest-ever IPO and the largest in history.
“We have seen eight new listings since the beginning of the year despite the pandemic,” Kuwaiz said.
Saudi Arabia, the world’s top oil exporter, is encouraging companies to list in the kingdom in a bid to deepen its capital markets under reforms aimed at reducing its reliance on crude.
It is worth noting that Tadawul opened to foreign investors in 2015 and there has been a raft of reforms to attract overseas capital to diversify the oil-dependent economy.
CMA regulations dictate that companies seeking to go public with their shares prepare in advance to fulfill listing requirements.
To fulfill requirements, the CMA grants a period of 3 months (12 weeks) to companies wishing to offer their shares in the main market and two months (8 weeks) for those opting to deal on Nomu.
Speaking at a webinar hosted by Asharqia Chamber last week, Kuwaiz stressed the importance of offering and listing in the market, saying the opportunity attracts many companies.
