The Saudi Stock Exchange is ready for the IPO

This transformation marks a new chapter in the group’s history and signals its readiness for the IPO later this year

  
A Saudi trader monitors stocks at the Saudi Bank in Riyadh November 22, 2008. Image used for illustrative purpose.

A Saudi trader monitors stocks at the Saudi Bank in Riyadh November 22, 2008. Image used for illustrative purpose.

REUTERS/Fahad Shadeed

At BMG Financial Group, we have dealt with different managements of the Saudi Stock Exchange (Tadawul) for more than 15 years, from the days when we listed insurance companies and hosted workshops, all the way to dealing with Tadawul executives and families interested in the Parallel Market (Nomu).

In the past few years, Tadawul has been on track in upgrading its capabilities, services, connectivity and overall international profile in anticipation of its planned initial public offering (IPO).

Last week, Tadawul announced its transformation into a holding group structure and reinforced its capabilities in technology innovation by launching a dedicated applied technology solutions company. This transformation marks a new chapter in the group’s history and signals its readiness for the IPO later this year.

The Tadawul Group will be the parent company with a portfolio of four subsidiaries: The Saudi Exchange, the Securities Clearing Center Co. (Muqassa), the Securities Depository Center Co. (Edaa) and Wamid — a new company offering innovative technology services.

The launch of Wamid will add further depth and diversity to the new Tadawul Group and its subsidiaries, strengthen market infrastructure through innovative solutions, and capture expansion opportunities through targeted investments in an array of sectors and industries.

Furthermore, it will enhance the capital market’s attractiveness among global investors and issuers by reinforcing its position as the exchange of choice through either initial or dual listing for these international companies. As an example, we are discussing with two global issuers the possibility of dual listing on Tadawul: One biopharma business based in the UK and another Egypt-based company involved in real estate development.

The Tadawul Group will benefit from the integration and synergies between its subsidiaries, ensuring efficient intra-group operations across the organization. The operational independence of each subsidiary will create an agile environment supporting rapid responses to evolving global and local market trends.

The new management will include Sarah Al-Suhaimi, chairperson of the Saudi Tadawul Group, Khalid Al-Hussan, the group’s CEO and Mohammed Al-Rumaih, CEO of Tadawul. I have dealt with each of them and found them to be among the top and leading professionals in the Saudi financial sector.

In my opinion, this transformation is a significant milestone in the Saudi financial sector and its capital market as part of the Vision 2030 plan.

The new Tadawul will deliver high-quality services that will increase its competitiveness among other leading emerging markets.

• Basil M.K. Al-Ghalayini is the chairman and CEO of BMG Financial Group.

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point-of-view

Copyright: Arab News © 2021 All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Equities