The Saudi Tadawul Holding Group, the kingdom's stock exchange, announced its intent to proceed with an initial public offering after receiving approval from the Capital Market Authority (CMA).
CMA said on Wednesday it approved an initial public offering of Tadawul of 36 million shares, which represents 30 percent of Tadawul's share capital.
Tadawul chairwoman Sarah al-Suhaimi said that the announcement marks a significant milestone in the company's growth story.
Suhaimi indicated that the announcement is a "natural next step as we emerge as a Saudi powerhouse with a global mindset that can leverage scale, innovation, and execution capabilities to drive long-term value for all our stakeholders."
The listing will help achieve the "nationwide goal of the successful delivery of Saudi's Vision 2030", which is "aligned" with the strategy of the Public Investment Fund (PIF), she added.
CMA CEO Khalid al-Hussan, said the institutional offering will be on November 21 over six days, while individuals' offering will be on November 30 for three days, indicating that nearly $133 million have been achieved in 2020.
The company said that all the offered shares would be delivered to institutional investors, with a clawback to retail investors of up to 10 percent of the offered shares.
The 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.
Tadawul is characterized by a diversified and interconnected business model, allowing the company to provide a full range of products and services related to the financial markets.
In accordance with Saudi regulations, CMA's approval is valid for a period of six months from the date of issuance. It will be annulled if the offering and listing of the shares are not completed during this period.
