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Saudi Tadawul to Offer 36 Mn Share in IPO

Tadawul prepares for initial public offering (Asharq Al-Awsat)
Tadawul prepares for initial public offering (Asharq Al-Awsat)
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Saudi Tadawul to Offer 36 Mn Share in IPO

Tadawul prepares for initial public offering (Asharq Al-Awsat)
Tadawul prepares for initial public offering (Asharq Al-Awsat)

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.

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Over 2,000 Local Factories Linked to Saudi Mega Projects

The Saudi NEOM region, showing ongoing construction work on one of the mega projects (Asharq Al-Awsat)
The Saudi NEOM region, showing ongoing construction work on one of the mega projects (Asharq Al-Awsat)
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Over 2,000 Local Factories Linked to Saudi Mega Projects

The Saudi NEOM region, showing ongoing construction work on one of the mega projects (Asharq Al-Awsat)
The Saudi NEOM region, showing ongoing construction work on one of the mega projects (Asharq Al-Awsat)

Saudi Arabia’s Ministry of Industry and Mineral Resources has added over 200 products to the national mandatory list and localized the production of vaccines and biological drugs for around 214 priority treatments.

Additionally, more than 2,000 local factories are now linked to major projects like NEOM, ROSHN, and the Diriyah Gate Development Authority.

A recent report reviewed by Asharq Al-Awsat reveals that the industrial sector saw substantial growth last year, with over 1,300 new licenses issued, attracting more than 81 billion riyals ($21.6 billion) in investments.

Around 1,055 factories began operations with investments of over 45 billion riyals ($12 billion), highlighting significant investor interest and supportive government policies.

By the end of 2023, there were 11,500 factories, with 9,400 operational and 2,100 under construction. National factories received the largest share of investments, followed by foreign and joint ventures.

Total factory investments reached about 1.5 trillion riyals ($400 billion) in 2023, with operational factories accounting for 1.4 trillion riyals ($373.3 billion) and those under construction about 122 billion riyals ($32.5 billion).

The Ministry also helped 13 industrial companies list on the Saudi Stock Exchange (Tadawul) with a combined capital of 2 billion riyals ($533.3 million).

The government also launched a platform for those interested in the Kingdom’s industry landscape, providing data on over 75 investment opportunities, benefiting 100 investors.

Mining Sector

Saudi Arabia’s mining sector continued to grow last year, with over 200,300 active licenses, including 816 issued in 2023. Construction quarries held 64% of the licenses, followed by exploration, exploitation, reconnaissance, and surplus ores.

The Ministry offered five mining licenses for economically viable sites and allocated 15 sites for mining activities for four types of ores. The sector achieved record revenues of over 1.8 billion riyals ($480 million) last year.

Total investments in mining industries reached 443 billion riyals ($118.1 billion), with direct foreign investments in the industry amounting to about 210 billion riyals ($56 billion).