After facilitating the offerings of so many other companies, Tadawul wants an IPO of its own. In a statement made to the Saudi Stock Exchange on Sunday, Tadawul announced its plan to raise up to $1b from an initial public offering.
Tadawul plans to sell 36 million of its 120 million issued share capital to the public. While a final price per share has yet to be determined, the statement indicated it will be somewhere between 95 and 105 riyals. A final date has also yet to be determined, but the process is already well underway.
Tadawul CEO Khalid Al Hussan thinks the timing is right to go public, stating that “individual investors’ demand has been high, as seen during recent IPOs in Saudi Arabia, and we wanted to seize this momentum to encourage diversity in our shareholding structure post-listing.”
why it matters
Tadawul is one of the top ten global stock markets and has a market capitalization of around $2.8t. After its listing, it will become only the third publicly traded stock exchange MENA after the Dubai Financial Market and Boursa Kuwait.