Tadawul trading screen
Argaam conducted a study on the offer prices of the companies going public and the price-to-earnings (P/E) ratios for the firms that have offered shares in initial public offerings (IPOs) since 2020.
Argaam also drew a comparison between the performance of these firms and the Saudi Exchange (Tadawul).
Amlak International for Real Estate Finance Co. (Amlak) reported the lowest offer price of SAR 16 a share and a P/E ratio of 15.1x. Amlak went public in July 2020, when the Tadawul All Share Index (TASI) hovered at 7,500 points.
Alkhorayef Water and Power Technologies Co. (AWPT) came second, reporting a P/E of 15.8x and an offer price of SAR 72 a share. Alkhorayef shares were listed in February 2021 when Tadawul benchmark hit 9,500 points.
The offer price of Tanmiah Food Co., which was listed on Tadawul in July, stood at SAR 67 a share, with a P/E ratio of 30.2x. According to data available with Argaam, solutions by stc and ACWA Power were traded at P/Es of 25.4x and 40.5x, respectively.
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P/E Ratios During IPOs Since 2020 |
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Company |
IPO Date |
IPO Price (SAR) |
Number of IPO Shares (mln) and IPO Size (%) |
P/E Ratio During IPO (X) |
P/B Ratio (X) |
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|
2020 IPOs |
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|
Sumou Real Estate- Nomu |
May 11 |
24 |
25.0 (5%) |
12.6 |
2.4 |
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|
Amlak |
July 2 |
16.0 |
90.6 (30%) |
15.1 |
1.3 |
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|
Al Habib Group |
Feb. 26 |
50.0 |
350.0 (15%) |
20.1 |
4.0 |
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|
BinDawood |
Oct. 8 |
96.0 |
114.3 (20%) |
21.3 |
7.8 |
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2021 IPOs |
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Alkhorayef Water |
Feb. 16 |
72.0 |
25.0 (30%) |
15.8 |
6.1 |
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Burgerizzr- Nomu |
Sept. 8 |
165 |
2.5 (29%) |
21.7 |
3.4 |
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solutions by stc |
Sept. 19 |
151 |
120.0 (20%) |
25.4 |
8.8 |
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|
Theeb Rent a Car |
March 21 |
40.0 |
43.0 (30%) |
27.2 |
3.6 |
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|
Tanmiah Food |
July 27 |
67.0 |
20.0 (30%) |
30.2 |
3.6 |
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|
ACWA Power |
Sept. 29 |
51-56 |
645.8 (11%) |
37 – 40.5 |
4.4 |
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Comparison of P/E Ratios During IPOs, Market Performance |
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|
Company |
IPO Date |
Average Market Close During IPO Period (Points) |
Company’s P/E Ratio at IPO (X) |
Market’s P/E Ratio at IPO (X) |
Average Market Trading During IPO Period (SAR bln) |
|
2020 IPOs |
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|
Sumou Real Estate - Nomu |
May 11 |
6,500 |
12.6 |
24 |
5 |
|
Amlak |
July 2 |
7,200 |
15.1 |
27 |
6 |
|
Al Habib Group |
Feb. 26 |
7,600 |
20.1 |
23 |
4 |
|
BinDawood |
Oct. 8 |
8,300 |
21.3 |
27 |
11 |
|
2021 IPOs |
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Alkhorayef Water |
Feb. 16 |
9,000 |
15.8 |
40 |
13 |
|
Burgerizzr- Nomu |
Sept. 8 |
11,400 |
21.7 |
27 |
7 |
|
solutions by stc |
Sept. 19 |
11,400 |
25.4 |
27 |
7 |
|
Theeb Rent a Car |
March 21 |
9,500 |
27.2 |
26 |
10 |
|
Tanmiah Food |
July 27 |
10,800 |
30.2 |
37 |
7 |
|
ACWA Power |
Sept. 29 |
11,400 |
37 – 40.5 |
27 |
7 |
The share offerings, launched since 2020, were more than 1.000% oversubscribed. The IPO of Shatirah House Restaurant Co. (Burgerizzr) was the last share offering in the market, which was more than 6646% oversubscribed. Most of the stocks were traded at higher prices compared to the IPO price.
|
Company |
IPO Date |
IPO Price (SAR) |
Number of IPO Shares |
Coverage Ratio |
Stock Variation From IPO Price |
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|
2020 IPOs |
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|
Sumou Real Estate - Nomu |
May 11 |
24 |
1.25 |
236 % |
+ 156 % |
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|
Amlak |
July 2 |
16.0 |
27.18 |
2,690 % |
+ 50 % |
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|
Al Habib Group |
Feb. 26 |
50.0 |
52.50 |
710 % |
+ 258 % |
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|
BinDawood |
Oct. 8 |
96.0 |
22.86 |
1,396 % |
+ 14 % |
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2021 IPOs |
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|
Alkhorayef Water |
Feb. 16 |
72.0 |
7.50 |
1,511 % |
+ 77 % |
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|
Burgerizzr- Nomu |
Sept. 8 |
165 |
0.73 |
6,646 % |
+ 58 % |
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|
Theeb Rent a Car |
March 21 |
40.0 |
12.9 |
3,385 % |
+ 64 % |
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Tanmiah Food |
July 27 |
67.0 |
6.00 |
1,170 % |
+ 63 % |
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|
solutions by stc |
Sept. 19 |
151 |
42.00 |
-- |
-- |
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|
ACWA Power |
Sept. 29 |
51-56 |
71.04 |
-- |
-- |
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