SNB Capital sees ‘positive’ outlook for Tadawul, more IPOs, M&As in 2025

Zaid Al Ghoul, head of Investment Banking at SNB Capital

The outlook for the Saudi Exchange (Tadawul) is generally “positive” for 2025, according to Zaid Al Ghoul, head of Investment Banking at SNB Capital.

He stated that 2024 witnessed a robust performance with 14 initial public offerings (IPOs) on the Main Market and 27 on the Nomu-Parallel Market, reflecting increased activity.

In an interview with Argaam on the sidelines of the Capital Markets Forum 2025, Al Ghoul said that the market witnessed a number of merger and acquisition (M&A) deals, consistent with previous years, and an ongoing momentum in debt issuances this year.

There are great opportunities for M&A activity, especially in the insurance and cement sectors, amid higher private equity activity, as some companies tend to restructure or merge in preparation for a public offering, Al Ghoul said. He expected this trend to continue, especially as the market develops and the quality of listed companies improves.
 

He added that M&A activity has become more vibrant, noting that SNB Capital launched a division specialized in this field in 2024, which successfully closed a large number of deals.
 

Al Ghoul said secondary offerings witnessed remarkable progress in 2024, as some strategic shareholders sold their stakes in listed companies, such as Aramco's $12 billion secondary offering, in addition to the Public Investment Fund's (PIF) $1 billion offering in stc.
 

He pointed out that SNB Capital has been active in these offerings, as it executed three negotiated deals, expecting 2025 to see more such deals due to the positive developments witnessed by Tadawul.