Logo of Saudi Tadawul Group
Saudi Tadawul Group Holding Co. will start today, Nov. 30, retail subscription to about 10.8 million shares at SAR 105 each, as set by the book building process.
On Nov. 3, the Capital Market Authority (CMA) approved the company’s application for IPO of 36 million ordinary shares, or 30% of the company’s SAR 1.2 billion share capital.
The group has also increased the maximum number of the shares allocated to retail subscribers from 3.6 million, or 10% of offer size, to 10.80 million, or 30% of the total offered shares.
The retail offering will run for three days from Nov. 30 to Dec. 2.
Subscription by institutional investors ended last week, and it was 121x oversubscribed.
Saudi Tadawul Group's IPO is the eighth on Tadawul in 2021, following the IPOs of Alkhorayef Water & Power Technologies Co., Theeb Rent a Car Co., Tanmiah Food Co., solutions, International Company for Power and Water Projects (ACWA Power), Arabian Contracting Services Co. (Al Arabia) and Nayifat Finance Co. (NFC).
The Saudi market saw three IPOs in 2020, namely Dr. Sulaiman Al Habib Medical Services Group in February, Amlak International for Real Estate Finance Co. in July and BinDawood Holding Co. in October.
Company Info:
Saudi Tadawul Group was established as a closed joint-stock company in 2007, with SAR 1.2 billion capital in Riyadh, fully-owned by the Public Investment Fund (PIF).
On May 20, it converted into a holding company, named Saudi Tadawul Group, in preparation of going public this year.
The company's principal activities are managing and supporting subsidiaries or participating in the management of other companies in which it owns shares, investing its funds in shares and other securities, owning real estate and other properties in connection with its businesses, granting loans, guarantees and financing to its subsidiaries, and owning and leasing industrial property rights to its subsidiaries or other companies.
|
Key Developments |
|
|
Period |
Developments |
|
2007 |
The Saudi Stock Exchange (Tadawul) was established as a joint stock company as the sole and exclusive entity authorized to act as a securities exchange in the Kingdom Establishment of the Main Market |
|
2008 |
CMA approved the entry of foreign investment through swap agreements |
|
2009 |
Establishment of the fixed-income market |
|
2010 |
Launch of the ETFs platform |
|
2012 |
Formation of Tadawul Real Estate Co., in partnership with PIF and Public Pension Agency (PPA) |
|
2013 |
Launch of tradable rights framework |
|
2015 |
Allowing qualified foreign investors (QFIs) to invest through QFI framework |
|
Launch of the Independent Custody Framework, which supports the protection of investor assets by way of separating custody services from brokerage services, in line with the best international practices and the listing requirements for international indices |
|
|
The Saudi Exchange deploys X-Stream trading platform in cooperation with Nasdaq |
|
|
2016 |
Formation of Edaa (a central securities depository) as the security depository subsidiary |
|
Launch of the REITs platform |
|
|
2017 |
Establishment of the Nomu - Parallel Market for the SME sector |
|
Agreement with Nasdaq to revamp the Exchange’s post-trade infrastructure |
|
|
Change of the settlement cycle from (T+0) to (T+2) |
|
|
Launch of securities borrowing and lending and short selling frameworks |
|
|
Registration of all government bonds and sukuk in Edaa |
|
|
2018 |
Formation of subsidiary Muqassa (a central clearing counterparty) as a securities settlement center |
|
MSCI, S&P and FTSE announce intention to include the exchange in their emerging markets indices |
|
|
Listing of government sukuk and bonds on the debt instruments market |
|
|
2019 |
The exchange named as one of the world’s 10 largest, in terms of total market capitalization of listed securities, with the listing of Saudi Arabian Oil Co. (Saudi Aramco) |
|
Complete inclusion in MSCI and S&P Emerging Markets indices and partial inclusion in the FTSE Russell Emerging Index |
|
|
Allowing foreign listed companies to list (on a dual listing basis) on its Main Market |
|
|
2020 |
Muqassa licensed by CMA as a qualified central counterparty (QCCP) |
|
Activated clearing derivatives with the launch of the derivatives market |
|
|
Funds allowed to be listed on Nomu |
|
|
Completed inclusion in the FTSE Emerging Index |
|
|
Edaa launches REPO collateral transfer services |
|
|
Listing for the first time sukuk and commodities ETFs |
|
|
Incorporation of Tadawul Advanced Solutions Co. (WAMID), a subsidiary focused on technology innovation |
|
|
2021 |
Linking Clearstream with Edaa as the first International Central Securities Depository (ICSD), which allows foreign investors to invest in local listed bonds and sukuk |
|
Activation of WAMID |
|
|
Launch of the Closed-Ended Funds platform |
|
|
The Saudi Stock Exchange is reorganized, whereby the company is converted into a holding company and changes its name to Saudi Tadawul Group Holding Co. A new company is established under the name Saudi Exchange Co. and assumes all listing and trading services |
|
The group offers securities products and services, covering listing, trading, settlement, clearing, market information, indices, custody and registration services for listed and non-listed securities, post-trade services (pledging, managing general assemblies, electronic voting, company procedures, dividend distribution and other services) and market and other IT solutions.
The group generated its revenue primarily from services correlated with trading value (approximately 78%).
|
Group’s Revenue by Service |
|
|
Service |
Share in group's revenue as on June 30, 2021 |
|
Trading |
78% |
|
Listing |
6% |
|
Depository and registration |
9% |
|
Market information |
7% |
The group has four fully-owned subsidiaries, in addition to a 33.12% stake in a real estate company.
Here are the details of the companies owned by the group:
|
Subsidiaries |
|
|
Company |
Ownership & Activity |
|
Saudi Exchange (Tadawul) |
A wholly owned company that operates the Saudi stock market. It enables, through its various platforms, the buying and selling of securities. It also enables companies to obtain financing through the share offerings they make via a platform for listing their securities and provides trading data, reference data and financial indicators. |
|
Securities Depository Center (Edaa) |
A wholly owned company that provides securities settlement services for all securities traded in the market, in addition to providing deposit services including registration services, registration management and records management to clients. |
|
Securities Clearing Center (Muqassa) |
A wholly owned subsidiary that provides securities clearing services for the financial derivatives markets. It aims in the near future to activate clearing operations and provide services related to all other securities. |
|
Wamid |
A wholly owned subsidiary that aims to drive technology-based innovation while pursuing new opportunities in the region. Its objective is to enhance investors' market experience by means of technology development, data access and serving as the group's innovation hub. |
|
Tadawul Real Estate |
A 33.12%-owned subsidiary that is a limited-liability company, which operates in real estate management and development. It undertakes its current activity in managing the commercial office tower in King Abdullah Economic Center, Riyadh. |
Company’s Properties:
The group owns, or is in the process of transferring ownership thereof, three properties to serve the group’s operations. These properties include:
The second floor of the Data Center located in the King Abdullah Financial District.
Tadawul Tower located in KAFD.
A private warehouse in Al-Sulay District owned by the company.
The group leases 17 locations in Tawuniya Towers located on King Fahd Road, Olaya, Riyadh, to be used as private offices, warehouses and parking lots. They constitute all the lease agreements entered into by the group. The total value of annual lease paid for the group's offices amounted to SAR 14.56 million in 2020.
|
Company Profile |
|
|
Company |
Saudi Tadawul Group Holding |
|
Market |
Saudi Exchange (Tadawul) |
|
Core Activities |
A holding group that includes four subsidiaries, namely the Saudi Exchange (Tadawul), Securities Clearing Center (Muqassa), Securities Depository Center (Edaa) and Wamid. |
|
Capital |
SAR 1.2 bln |
|
Number of shares |
120 mln shares |
|
IPO Summary |
|
|
Issue percentage (%) |
30% |
|
Number of shares offered for retail investors |
10.8 mln shares, or 30% of total offered shares amounting to 36 mln |
|
Offering price per share |
SAR 105/share |
|
Qualified subscribers |
Retail investors - This tranche comprises Saudi nationals, including Saudi female divorcees or widows with minor children from a non-Saudi father. It also includes any non-Saudi natural person who is a resident in the Kingdom and any GCC national, who holds a bank account with one of the receiving entities. |
|
IPO minimum limit for retail investors |
10 shares |
|
IPO maximum limit for retail investors |
250,000 shares |
|
Retail subscription period |
3 days from Nov. 30 to Dec. 2, 2021 |
|
Final allotment |
Not later than Dec. 6, 2021 |
|
Surplus refunds |
Dec. 8, 2021 |
|
Use of proceeds |
The net proceeds from the IPO, after deducting the SAR 80 million IPO costs, will be distributed to the selling shareholders. The company will not receive any portion of the IPO proceeds. |
|
Special Information |
|
|
Lead manager |
SNB Capital |
|
Financial Advisors, Book runners, Joint Global Coordinators and Underwriters |
SNB Capital, JP Morgan Saudi Arabia and Citigroup Saudi Arabia |
|
Receiving banks |
Saudi National Bank - Al Rajhi Bank - Arab National Bank - Alinma Bank - Riyad Bank |
Public Investment Fund (PIF) currently owns 100% of the company. This percentage will decrease to 70% after the IPO.
|
Company Shareholders |
||||
|
Shareholders |
Before IPO |
After IPO |
||
|
Number of shares (mln shares) |
Ownership (%) |
Number of shares (mln shares) |
Ownership (%) |
|
|
Public Investment Fund |
120 |
100% |
84 |
70% |
|
Public |
-- |
-- |
36 |
30% |
|
Total |
120 |
100% |
120 |
100% |
Comments
{{DisplayName}}
{{ElapsedTime}}