Saudi Tadawul Group sets IPO price range at $25-$28  

Announces commencement of institutional book-building period  

  
A Saudi woman walks at the Saudi stock market (Tadawul), in Riyadh, Saudi Arabia March 9, 2020.

A Saudi woman walks at the Saudi stock market (Tadawul), in Riyadh, Saudi Arabia March 9, 2020.

REUTERS/Ahmed Yosri

Saudi Tadawul Group Holding Co. (STG), which operates the kingdom’s stock exchange, has set the price range for its initial public offering (IPO) at between 95 riyals ($25.33) and 105 riyals per share. 

In a statement on Sunday, STG, along with its financial advisors, SNB Capital Co., J. P. Morgan Saudi Arabia Co. and Citigroup Saudi Arabia, also said the institutional book-building period has begun. 

The owner and operator of the Saudi Stock Exchange (Tadawul) will offer 36 million ordinary shares, representing 30 percent of its issued share capital of 120 million shares, through a sale of existing shares by the sole shareholder, the Public Investment Fund (PIF). 

Immediately following the listing, the company is expected to have a free float of 30 percent of the share capital. STG had earlier said it will list its ordinary shares on the bourse’s main market.  

Tadawul has a market capitalisation of more than 10 trillion riyals ($2.6 trillion). Once listed, it will become the third publicly traded stock exchange in the region after the Dubai Financial Market (DFM) and Boursa Kuwait.  

(Writing by Brinda Darasha; editing by Cleofe Maceda)  

brinda.darasha@refinitiv.com 

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021

More From Equities