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Saudi’s Tadawul IPO 442.53% Oversubscribed

Saudi’s Tadawul IPO 442.53% Oversubscribed

Tuesday, 7 December, 2021 - 08:45
Saudi Tadawul is preparing to list on Wednesday (Asharq Al-Awsat)

Shares of Tadawul group will begin trading on the main market on Wednesday, Dec. 8.


The individual subscribers’ tranche of Tadawul’s initial public offering was 442.53% oversubscribed with a total demand of SR5.02 billion ($1.3 billion).


The stock exchange group was offering 10.8 million shares to individual investors, or 30% of the total offer shares at a final price of SR105.


Around 598,327 subscribers participated in the period. The subscription period started on November 30.


The IPO will provide an important strategic dimension to realize Tadawul’s expansion plans, strengthen its position globally, and align its growth objectives with the Public Investment Fund’s strategy to boost the economic transformation of Saudi Arabia.


Tadawul had earlier increased the size of the offering for retail investors to 30%, up from 10% initially, to encourage the participation of individual investors.


Subscribers will each receive a minimum of 10 shares, while those remaining will be allocated on a pro-rata basis.


The shares will be listed on the main index of the Saudi Exchange once all listing formalities are complete. Citigroup, JP Morgan Chase and SNB Capital are financial advisers and global coordinators for the IPO.


Tadawul is among the top 10 global stock markets with a market capitalization of about $2.8 trillion.


Tadawul Group has four subsidiaries that include the Saudi Exchange, a dedicated arm running the kingdom’s equity market previously known as the Saudi Stock Exchange Company; the Securities Clearing Centre Company, known as Muqassa; the Securities Depository Centre Company (Edaa); and a new subsidiary focused on applied technology services, known as Wamid.


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