Thursday, Apr 19, 2012

(This story was originally published Wednesday.)

--Regulator says seeing more IPO interest now, more optimism

--Tadawul pushes for family-owned companies to go public

By Ellen Knickmeyer

Of ZAWYA DOW JONES

RIYADH (Zawya Dow Jones)--Saudi Arabia should see significantly more companies go public this year as market sentiment improves, after a lackluster 2011, the kingdom's market regulator said Wednesday.

"Last year it was not quite a good year" for initial public offerings, Abdulrahman al-Tuwaijri, chairman of the Capital Market Authority, told Zawya Dow Jones on the sidelines of a seminar, adding, "We're seeing more of an interest now, more of an optimism."

The Middle East's largest market saw only five companies launch initial public offerings last year as the benchmark Tadawul index--under pressure due to the Arab Spring and global economic uncertainty--ended with a 3% loss, according to Zawya.com.

A stocks rally in 2012 has lifted sentiment as investors eye some attractive valuations amid rising optimism about the kingdom's economy benefiting from buoyant oil prices. A possible opening of the market to direct foreign investors is also providing some cheer, although al-Tuwaijri stressed Wednesday that this would happen "gradually".

"This year we definitely expect more [IPOs] are coming," al-Tuwaijri said, but added he couldn't say how many IPOs were expected.

Three Saudi companies have launched IPOs in 2012 so far, while several others have evinced interest to go public, according to zawya.com.

Officials at Saudi's Tadawul market urged representatives of about 120 family-owned and other private businesses to consider publicly listing their companies at an event in Riyadh on Wednesday. Family-owned private companies still dominate much of the economy here.

"The number of listed companies in the stock market does not reflect the status and importance of the stock market," al-Tuwaijri said at the seminar.

-By Ellen Knickmeyer, Dow Jones Newswires, +966 1 279 5252,

ellen.knickmeyer@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

19-04-12 0338GMT