AI Summary
Tadawul trading screen
The Saudi market witnessed a momentum in the number of initial public offerings (IPOs) and direct listings in 2022 by 49 companies and funds.
The main market saw 17 IPOs, including a first-time dual offering with the Abu Dhabi Securities Exchange (ADX). This is besides the IPO of Alinma Hospitality REIT Fund.
Meanwhile, Nomu-Parallel Market’s qualified investors subscribed to 17 stocks, while 13 companies were directly listed. This is in addition to the offering of Alwaha REIT Fund.
The details of the market offerings in 2022 are as follows:
|
Details of Saudi Market Offerings in 2022 |
||
|
Offering method |
Number |
|
|
IPOs in main market |
16 |
|
|
Dual listings in main market |
1 |
|
|
IPOs for qualified investors on Nomu |
17 |
|
|
Direct listing on Nomu |
13 |
|
|
REITs (TASI & Nomu) |
2 |
|
|
Total |
49 |
|
Last year saw 17 public offerings with a total of 680.91 million shares and a value of SAR 31.42 billion. This excluded the shares offered to Saudi institutional investors in Americana Restaurants International’s dual-class IPO.
The group offered 252.7 million shares to retail investors in Saudi Arabia, representing 10% of the total offering. Meanwhile, 2.0217 billion shares, or 80% of the total, were allocated to institutional investors in Saudi Arabia and the UAE, without specifying the size of the offering in the Kingdom.
Excluding the shares offered to institutional investors in Americana’s IPO, 2022 public offerings were historically the highest in the market in terms of quantity and value after 2019 IPOs that saw the offering of Saudi Aramco and those of 2008.
The following table shows the development in the IPOs in the Saudi main market since 2007:
|
Development in Main Market IPOs |
|||
|
Period |
Number of IPOs |
Number of shares (mln) |
IPO proceeds (SAR bln) |
|
2007 |
26 |
1.41* |
18.04 |
|
2008 |
13 |
2.63* |
36.39 |
|
2009 |
11 |
338.70 |
3.88 |
|
2010 |
9 |
245.35 |
3.83 |
|
2011 |
5 |
116.90 |
1.73 |
|
2012 |
7 |
257.40 |
5.32 |
|
2013 |
5 |
134.25 |
1.96 |
|
2014 |
6 |
587.50 |
25.23 |
|
2015 |
4 |
99.60 |
4.15 |
|
2016 |
3 |
55.76 |
2.79 |
|
2017 |
1 |
4.50 |
0.23 |
|
2018 |
2 |
28.72 |
1.06 |
|
2019 |
5 |
3.12* |
99.81 |
|
2020 |
3 |
102.54 |
5.25 |
|
2021 |
9 |
235.60 |
17.18 |
|
2022 |
17 |
680.91** |
31.42 |
*bln shares
**Includes only retail investors shares in Americana’s IPO.
It is noteworthy that the Capital Market Authority (CMA) approved the IPO of Abdullah Al Othaim Investment Co. (AOIC) on Tadawul, but the offering was cancelled.
It also greenlit four other offerings in 2022, namely Morabaha Marina Financing Co. (MMFC), Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory (Jamjoom Pharma) and Al Watania for Industries Co.
The following is a table outlining the IPOs that took place in 2022:
|
Main Market IPOs in 2022 |
||||||
|
Company |
Number of IPO shares (mln) |
Offering price (SAR) |
Offering size (SAR mln) |
Institutional investors coverage |
Retail investors coverage |
Funds raised for retail investors (SAR bln) |
|
Luberef |
50.05 |
99.00 |
4954 |
29.5 x |
230% |
2.85 |
|
Alsaif Gellery |
10.50 |
115.00 |
1208 |
15.5x |
269% |
0.33 |
|
Riyadh Cables |
33.00 |
43.00 |
1419 |
71.8x |
671% |
0.95 |
|
Americana |
252.71* |
2.68 |
677 |
65.5x** |
280% |
1.89 |
|
2P |
4.50 |
185.00 |
833 |
61.4x |
375% |
0.31 |
|
Marafiq |
73.09 |
46.00 |
3362 |
59x |
632% |
6.37 |
|
Arabian Drilling |
26.70 |
100.00 |
2670 |
61x |
816% |
2.18 |
|
Naqi Water |
6.00 |
69.00 |
414 |
30.3x |
1,350% |
0.56 |
|
Alamar |
10.63 |
115.00 |
1223 |
47.5x |
690% |
0.85 |
|
Retal |
12.00 |
120.00 |
1440 |
62.7x |
888% |
1.29 |
|
SHL |
30.00 |
20.00 |
600 |
50x |
2,644% |
1.59 |
|
Nahdi |
39.00 |
131.00 |
5109 |
59x |
1,300% |
6.76 |
|
AMAK |
19.80 |
63.00 |
1247 |
73.6x |
1,060% |
4.00 |
|
Aldawaa |
25.50 |
73.00 |
1862 |
53.8x |
2,515% |
4.68 |
|
Elm |
24.00 |
128.00 |
3072 |
69.5x |
1,312% |
12.09 |
|
Equipment House |
6.00 |
52.00 |
312 |
65x |
3,400% |
1.06 |
|
East Pipes |
6.30 |
80.00 |
504 |
71.8x |
1,610% |
0.81 |
|
Alinma Hospitality REIT |
51.14 |
10.00 |
511.4 |
-- |
-- |
0.56 |
*Shares offered to Saudi retail investors only - the percentage of offering for Saudi institutional investors has not been clarified
**Includes coverage of UAE institutional investors
Nomu saw IPOs of 17 companies in 2022 — an all-time high, compared to six only in 2021.
Last year also saw the cancellation of two IPOs of Al Ramz Co. and Rayan Advanced Industrial Co.
|
Development in Nomu IPOs |
|||
|
Period |
Number of IPOs |
Number of shares (mln) |
IPO proceeds (SAR bln) |
|
2017 |
9 |
20.48 |
752.25 |
|
2018 |
1 |
1.20 |
32.40 |
|
2019 |
-- |
-- |
-- |
|
2020 |
1 |
1.25 |
30.00 |
|
2021 |
6 |
8.59 |
1,940.97 |
|
2022 |
17 |
21.25 |
1,257.72 |
Most IPOs for qualified investors on Nomu were covered several times.
The table below indicates IPOs on Nomu in 2022:
|
Nomu IPOs in 2022 |
|||
|
Company |
Number of IPO shares (mln) |
Offering price (SAR) |
Offering size (SAR mln) |
|
Nofoth Food |
0.29 |
150.00 |
43.20 |
|
Leen Alkhair |
0.96 |
65.00 |
62.32 |
|
Saudi Top Trading |
0.88 |
133.00 |
117.04 |
|
Molan |
0.53 |
24.00 |
12.78 |
|
Knowledge Tower |
0.35 |
40.00 |
14.00 |
|
AlBabtain Food |
0.54 |
77.00 |
41.89 |
|
APICO |
1.00 |
27.00 |
27.00 |
|
Naba Alsaha |
1.40 |
57.00 |
79.80 |
|
IHR |
0.50 |
34.00 |
17.00 |
|
Saudi Networks |
1.50 |
71.00 |
106.50 |
|
Ladun |
5.00 |
18.00 |
90.00 |
|
Amwaj International |
0.60 |
72.00 |
43.20 |
|
FADECO |
0.28 |
71.00 |
20.02 |
|
Tibbiyah |
5.00 |
82.00 |
410.00 |
|
Al-Jouf Health Water |
0.63 |
35.00 |
21.88 |
|
Raoom |
1.00 |
80.00 |
80.00 |
|
Gas Arabian Services |
0.79 |
90.00 |
71.10 |
Last year saw 13 direct listings on Nomu compared to eight in 2021, as follows:
|
Development in Nomu Direct Listing |
|
|
Period |
Number of listings |
|
2020 |
1 |
|
2021 |
8 |
|
2022 |
13 |
The below table illustrates the details of direct listings in 2022:
|
Direct Listing on Nomu |
|
||
|
Company |
Listing date |
Price Guidance (SAR) |
|
|
AME |
Jan. 18 |
50.00 |
|
|
Obeikan Glass |
Feb. 7 |
68.00 |
|
|
Saudi Parts Center |
Feb. 21 |
49.00 |
|
|
Saudi Azm |
March 1 |
70.00 |
|
|
Naseej Tech |
May 24 |
70.00 |
|
|
Aqaseem |
May 25 |
48.00 |
|
|
Tadweeer |
May 26 |
65.00 |
|
|
KIER International |
July 17 |
34.00 |
|
|
Academy of Learning |
July 18 |
40.00 |
|
|
Future Care |
Aug. 1 |
90.00 |
|
|
Rawasi |
Aug. 18 |
40.00 |
|
|
Sure Global |
Oct. 24 |
70.00 |
|
|
Edarat |
Dec. 26 |
300.00 |
|
In terms of REITs, the Saudi market marked the offering of two funds over the past year, one on each of TASI and Nomu — the first of its kind on the latter.
|
Development in Main Market REIT IPOs |
|||
|
Period |
Number of IPOs |
Number of units (mln units) |
Offering size (SAR mln) |
|
2017* |
9 |
294.49 |
2944.85 |
|
2018* |
7 |
314.83 |
3148.34 |
|
2019 |
1 |
30.52 |
305.15 |
|
2020 |
-- |
-- |
-- |
|
2021 |
-- |
-- |
-- |
|
2022 |
1 |
51.14 |
511.40 |
*Derayah REIT’s IPO ran between Dec. 2017-Jan. 2018
|
Nomu REIT IPOs in 2022 |
|||
|
Period |
Number of IPOs |
Number of units (mln units) |
Offering size (SAR mln) |
|
2022 |
1 |
3.23 |
32.27 |
By 2022-end, Saudi market capitalization fell to nearly SAR 9.88 trillion, a SAR 131 billion decline compared to 2021.
|
Saudi Market Capitalization |
||
|
Period |
Market capitalization (SAR bln) |
Index value (points) |
|
2001 |
274.53 |
2,430 |
|
2002 |
280.73 |
2,518 |
|
2003 |
589.93 |
4,437 |
|
2004 |
1,148.60 |
8,206 |
|
2005 |
2,438.20 |
16,713 |
|
2006 |
1,225.86 |
7,934 |
|
2007 |
1,946.35 |
11,039 |
|
2008 |
924.53 |
4,803 |
|
2009 |
1,195.51 |
6,121 |
|
2010 |
1,325.39 |
6,621 |
|
2011 |
1,270.84 |
6,418 |
|
2012 |
1,400.34 |
6,801 |
|
2013 |
1,752.86 |
8,536 |
|
2014 |
1,812.89 |
8,333 |
|
2015 |
1,579.06 |
6,912 |
|
2016 |
1,681.95 |
7,210 |
|
2017 |
1,689.60 |
7,226 |
|
2018 |
1,858.95 |
7,827 |
|
2019 |
9,025.44 |
8,389 |
|
2020 |
9,101.81 |
8,690 |
|
2021 |
10,009.15 |
11,282 |
|
2022 |
9,878.1 |
10,478 |
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