The initial public offerings (IPOs) on the Saudi Stock Exchange (Tadawul) hit an all-time high last year in terms of size and value with 3.57 billion shares worth SAR 114.2 billion.
Last year, the Saudi market witnessed five share sales, namely Saudi Aramco, Maharah Human Resources, Arabian Centres, Ataa Educational Co. and Al-Moammar Information Systems (MIS).
This rise was spurred by the flotation of state-owned Saudi Aramco, the world’s largest IPO ever. The giant oil producer accounted for 3.45 billion shares, or SAR 110.4 billion of 2019’s offerings.
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Offerings since 2007 |
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Year |
Number of companies |
Number of offered shares (mln) |
Value of offers (SAR bln) |
|
2007* |
26 |
1414.5 |
18.0 |
|
2008* |
13 |
2560.0 |
36.4 |
|
2009 |
11 |
178.7 |
2.9 |
|
2010 |
9 |
245.4 |
3.8 |
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2011 |
5 |
111.9 |
1.7 |
|
2012 |
7 |
257.4 |
5.3 |
|
2013 |
5 |
134.3 |
2.0 |
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2014 |
6 |
587.5 |
25.2 |
|
2015 |
4 |
99.6 |
4.2 |
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2016 |
3 |
55.8 |
2.8 |
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2017 |
1 |
4.50 |
0.2 |
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2018 |
2 |
28.72 |
1.1 |
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2019 |
5 |
3573.1 |
114.2 |
*According to recent data by CMA
Saudi Aramco’s retail offering was 154% oversubscribed, raising SAR 49.2 billion.
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Offered companies on TASI in 2019 |
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Company |
Number of offered shares (mln) |
IPO volume for individuals (SAR mln) |
Subscription |
Fund raised (SAR mln) |
|
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Saudi Aramco |
3450 |
32* |
154 % |
49.2* |
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Ataa Educational |
12 |
34.8 |
426 % |
148.0 |
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Arabian Centers |
95 |
247 |
60 % |
148.2 |
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Maharah |
11.25 |
77.6 |
230 % |
178.8 |
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MIS |
4.8 |
21.6 |
149 % |
32.1 |
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*SAR billion
In 2019, the Capital Market Authority (CMA) approved the IPO of Dr. Sulaiman Al Habib Medical Group. The group plans to offer 52.50 million shares, representing 15% of its share capital.
The Saudi market regulator also green lighted the listing of a 30% stake, or 27.18 million shares of Amlak International for Real Estate Finance Company.
In addition, Nayifat Finance, one of Saudi Arabia’s leading non-bank financial institutions, request to float 36.5 million shares, or 30.041% of the share capital was also approved in 2019.
For REITs, the units of Shuaa REIT Fund were offered to the public, but the fund has not been listed yet. Meanwhile, Alkhabeer REIT Fund, which went public in 2018, was listed last year.
Elsewhere, Nomu Parallel Market did not witness any IPO in 2019. Five market players transitioned from Nomu to the main market.
The CMA approved the listing of a 30% stake, or 7.5 million shares of Sumou Real Estate Co. on the Nomu.
Raoom Trading Co. also obtained the market regulator’s nod to float 2.3 million shares on the Parallel Market.
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Offered REITs in 2019 |
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REIT |
Fund size (SAR mln) |
IPO volume (SAR mln) |
Subscription |
Fund raised (SAR mln) |
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Shuaa REIT |
591.5 |
305.2 |
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