Alhussan says 100 listing applications received until mid-February, new IPOs won’t affect market liquidity

Khalid Alhussan CEO of Saudi Tadawul Group

Khalid Alhussan, CEO of Saudi Tadawul Group, said almost 100 companies submitted files to list shares on the Saudi Exchange (Tadawul) by mid-February. These numbers are regularly updated, when there are more listing applications.

In an interview with Argaam on the sidelines of the Saudi Capital Market Forum, Alhusssan said 23 firms obtained final approval for listing, while 77 other applications are under study. Nomu-Parallel Market will have the lion’s share in new listings.

Alhussan shrugged off any possibility that new public offerings will impact market liquidity, as the investment environment in the Saudi market since 2022 to date meets all needs of issuers and investors. This is evidenced by the funds raised from initial public offerings (IPO), or private placements, or capital hikes, which reached nearly SAR 49 billion last year.

“We also introduced a new channel for dual listing,” he added.

Looking into net foreign investments in the Saudi market, which stood at SAR 43 billion last year, this means that an additional huge liquidity was injected in the market. It is necessary to fulfill and balance additional liquidity levels in the market through IPOs.

The Saudi market achieved growth on all levels, compared to other emerging markets that suffered recession in the last two years.

Alhussan also pointed to a decline in daily trading liquidity year to date, compared to the corresponding period last year, noting that most global markets are facing lower liquidity due to global inflation and the interest rate impact. The Saudi market is part of the world and is affected by its economic cycle.

The Saudi market is solid and sees strong growth, the top official added, noting that markets and investors can deal with these economic cycles.

“I believe we succeeded in making the market hold up a mirror to reflect our economy, which is part of the world. What is different and encouraging in Saudi Arabia is that our market covers all the channels that effectively meet the needs of issuer and investors,” he explained.

There is a strong momentum for dual listing by global and regional markets, especially after the successful IPO of Americana Restaurants International PLC. “We signed several agreements and memorandums of understating to explore cooperation opportunities and share experience. This will attract active investments and companies,” Alhussan said.

On the other hand, he said that opening fluctuation rates is always under review, but it is not on the table now. Any market enhancements will be discussed at Tadawul and the Capital Market Authority.