Saudi Arabia's stock exchange to sell shares in $4bln IPO - report

Tadawul close to announcing details of public offering

  
Saudi traders are seen as they monitor stock information at ANB Bank in Riyadh, Saudi Arabia December 15, 2020.

Saudi traders are seen as they monitor stock information at ANB Bank in Riyadh, Saudi Arabia December 15, 2020.

REUTERS/Ahmed Yosri

Saudi Arabia’s stock exchange (Tadawul) is set to launch an initial public offering (IPO) with a value of $4 billion (15 billion riyals), according to a Bloomberg report. 

Details of the offering could be released anytime this month, although discussions are still ongoing, the report added, citing sources who did not want to be named. However, Tadawul has not yet commented on the matter.

The Saudi bourse has been attracting interest from international investors this year.  

During the first nine months of 2021, foreign investments in the kingdom’s main market climbed 14 percent to 17 billion riyals, compared to 14.9 billion riyals a year earlier.  

The IPO market in the region has also seen a flurry of activity this year, with companies raising millions of dollars.  

A total of five IPOs with a value of $571 million were launched in the first quarter of 2021 alone. According to accounting firm PwC, two of the IPOs by Saudi-listed firms contributed to 49 percent of the total proceeds in the Gulf Cooperation Council (GCC) for the quarter. 

Saudi’s Alkhorayef Water and Power Technologies Co. and Theeb Rent a Car Co. had raised $138 million and $144 million dollars, respectively. 

Last month, Saudi Telecom Co.’s internet-services unit, Arabian Internet and Communications Services Co, surged on its trading debut after drawing $126 billion in orders for its IPO.

Saudi renewable energy projects developer ACWA Power is expecting to raise more than $1 billion from a public offering, valuing the company at about $10 billion. It has as set the final price of its initial public offering at SR56 ($14.9) per share.

IPOs from cargo firm Saudi Arabian Logistics Co and the specialty chemicals business of Saudi Basic Industries Corp (SABIC) are expected this year.

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

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