EFG Hermes KSA CEO expects market to react positively in Q4 2025

Saud Altassan, Chief Executive Officer (CEO) of EFG Hermes KSA

Saud Altassan, CEO of EFG Hermes KSA, said the IPO valuations have seen some changes compared to past years, due to weak market performance, though investor interest remains strong.

In an interview with Argaam on the sidelines of the EFG Hermes 11th Annual London Investor Conference, Altassan noted that investors have become more selective. Further, sectors currently enjoying strong demand are expected to maintain robust valuations, while other sectors will see valuation adjustments.

On outlook for the second half of the year, Altassan pointed to signs of potential recovery amid improved oil prices and government spending, both of which are directly linked to the performance of the Saudi market.

He added that the continued implementation of the Saudi Vision 2030 objectives should help boost foreign direct investment, stressing the importance of sustainable financing for executing mega projects across various sectors.

Altassan forecasts the market to start reacting positively in Q4 2025, amid optimism for growth across investment indicators and related economic benchmarks.

He revealed that EFG Hermes is working on three new IPOs, slated before year-end, having already received the Capital Market Authority (CMA) approval for two and awaiting the green light for the third in the coming weeks.

Further, the CEO pointed to the possibility of a fourth IPO if the regulatory approval is obtained, making 2025 one of the busiest years for the company in the Saudi market in terms of offerings.

The upcoming IPOs include Jamjoom Fashion and Cherry Rent-A-Car, amid strong investor interest in defensive sectors such as education and car rentals.

Altassan highlighted that EFG Hermes’ activities are not limited to IPOs but also include active M&As across different sectors.

Since the beginning of the year, it has completed Nesma & Partners’ acquisition of Al Yusr Industrial Contracting Co. (AYTB), Maarif Education's acquisition of Ibn Khaldoun Education Co. (IKEC), in addition to Jahez-Qatar's Snoonu deal, the CEO concluded.