AI Summary
Tadawul trading screen
The Saudi Exchange (Tadawul) attracted many initial public offerings (IPOs) in the last few years. In 2019, the Saudi market had the biggest share sale on record by Saudi Aramco, which raised SAR 96 billion, along with other IPOs debuting in the Main Market and Nomu-Parallel Market.
In 2020, only three listings were witnessed by Tadawul amid the COVID-19 pandemic outbreak, including Dr. Sulaiman Al Habib Medical Services Group, Amlak International for Real Estate Finance Co. and BinDawood Holding Co.
In 2021, nine companies listed their shares, namely Alkhorayef Water and Power Technologies Co., Theeb Rent a Car Co., Tanmiah Food Co., Arabian Internet and Communications Services Co. (solutions), ACWA Power, Arabian Contracting Services Co. (Al Arabia), Nayifat Finance Co., Saudi Tadawul Group Holding Co. and Almunajem Foods Co.
The IPO momentum continued this year, with seven new listings to date on Tadawul, including Elm Co., East Pipes Integrated Company for Industry, Scientific and Medical Equipment House Co. (Equipment House), Al-Dawaa Medical Services Co. (DMSCO), Nahdi Medical Co., and Al Masane Al Kobra Mining Co. (AMAK).
In a statement to Argaam, the Capital Market Authority (CMA) earlier said the year 2021 witnessed a surge in the number of IPOs that reached a record level at 21. In the first quarter of 2022, IPOs continued at a fast pace, reaching 18, to reflect the market regulator’s increasing role to finance economic growth.
Moreover, Tadawul CEO Mohammed Al-Rumaih said that nearly 100 companies filed for listing shares on the Saudi Exchange (Tadawul).
Since Aramco’s listing, Tadawul All-Share Index (TASI) jumped nearly 68%, gaining more than 5,450 points and hitting record levels since 2006.
The following table shows the details of IPOs since Aramco:
|
IPOs on Main Market since 2020 |
|||||
|
Company |
Offer Percentage |
No. of Offer Shares (mln) |
Offer Price (SAR) |
Institutional Coverage |
Retail Coverage |
|
SHL |
30% |
30.00 |
20.00 |
50x |
2644% |
|
AMAK |
30% |
19.80 |
63.00 |
73.6x |
1060% |
|
Nahdi |
30% |
39.00 |
131.00 |
59x |
1300% |
|
Al-Dawaa |
30% |
25.5 |
73.00 |
53.8x |
2515% |
|
Equipment House |
30% |
6.00 |
52.00 |
65x |
3400% |
|
Elm |
30% |
24.00 |
128.00 |
69.5x |
1311.6% |
|
East Pipes |
30% |
6.30 |
80.00 |
71.8x |
1610% |
|
Almunajem |
30% |
18.00 |
60.00 |
176x |
1190% |
|
Tadawul |
30% |
36.00 |
105.00 |
121x |
443% |
|
Nayifat |
35% |
35.00 |
34.00 |
136x |
2095% |
|
Al Arabia |
30% |
15.00 |
100.00 |
126.6x |
1480% |
|
ACWA Power |
11.11% |
81.20 |
56.00 |
248x |
1990% |
|
solutions |
20% |
24.00 |
151.00 |
130x |
2365% |
|
Tanmiah Food |
30% |
6.00 |
67.00 |
95x |
1171% |
|
Theeb |
30% |
12.90 |
40.00 |
60x |
3385% |
|
Alkhorayef |
30% |
7.50 |
72.00 |
63x |
1512% |
|
BinDawood |
20% |
22.86 |
96.00 |
48.7x |
1396% |
|
Amlak |
30% |
27.18 |
16.00 |
4.98x |
2690% |
|
Sulaiman Al-Habib |
15 |
52.50 |
50.00 |
74.4x |
710% |
|
Saudi Aramco |
1.50% |
3000.00 |
32.00 |
*465% |
|
*Total coverage, while the retail coverage stood at 153.7%
All the above-mentioned stocks rose, compared to their listing prices, except for Nayifat Finance Co.
Sulaiman Al-Habib and ACWA Power surged the most by 300% and 153%, respectively.
In Nomu, the Parallel Market saw 11 offerings since 2020 (only one in 2020, six in 2021 and four in 2022). Qualified investors will start subscribing to three new stocks in May.
|
Nomu-Parallel Market IPOs |
||||
|
Company |
Offer Percentage |
No. of Offer Shares (mln) |
Offer Price (SAR) |
Offer Size (SAR mln) |
|
Tibbiyah |
25% |
5.00 |
82.00 |
410 |
|
Al-Jouf Water |
20% |
0.63 |
35.00 |
22 |
|
Raoom Trading |
20% |
1.00 |
80.00 |
80 |
|
GAS |
5% |
0.79 |
90.00 |
71 |
|
Alwasail |
10% |
2.50 |
19.00 |
48 |
|
AICTEC |
20% |
0.40 |
110.00 |
44 |
|
Jahez |
18% |
1.89 |
850.00 |
1606 |
|
Group Five |
10% |
2.80 |
35.00 |
98 |
|
Al-Hasoob |
20% |
0.28 |
95.00 |
27 |
|
Burgerizzr |
29% |
0.73 |
165.00 |
120 |
|
Sumou |
30% |
7.5 |
24.00 |
180 |
Moreover, Nomu witnessed 13 direct listings, including one in 2020, eight in 2021 and four this year.
|
Direct Listings on Nomu |
|||
|
Company |
Offering Type |
Listing Date |
Price Guidance (SAR) |
|
Saudi Azm |
Direct Listing |
March 1, 2020 |
70.00 |
|
Saudi Parts Center |
Direct Listing |
Feb. 21, 2022 |
49.00 |
|
Obeikan Glass |
Direct Listing |
Feb. 7, 2022 |
68.00 |
|
AME Company for Medical Supplies |
Direct Listing |
Jan. 18, 2022 |
50.00 |
|
Enmaa Al-Rawabi |
Direct Listing |
Oct. 28, 2021 |
15.00 |
|
GAS |
Direct Listing |
Sep. 22, 2021 |
13.00 |
|
Banan |
Direct Listing |
Aug. 11, 2021 |
15.00 |
|
Canadian Medical Center |
Direct Listing |
Aug. 2, 2021 |
39.00 |
|
MOBI |
Direct Listing |
July 28, 2021 |
32.00 |
|
Al Naqool |
Direct Listing |
June 2, 2021 |
21.00 |
|
Fesh Fash |
Direct Listing |
May 5, 2021 |
50.00 |
|
Watani Steel |
Direct Listing |
Feb. 17, 2021 |
37.00 |
|
Riyadh Cement |
Direct Listing |
Sep. 2, 2020 |
20.00 |
All the above-mentioned stocks rose, compared to their listing prices, except for Arabian International Healthcare Holding Co.
(Tibbiyah), Gas Arabian Services Co. (GAS) and Group Five Pipe Saudi Co.
Mohammed Hasan AlNaqool Sons Co. and Natural Gas Distribution Co. gained the most by 567% and 515%, respectively.
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