Tadawul Group gets over 50 applications for listing on Saudi market: CEO

Khalid Al Hussan, CEO of the Saudi Tadawul Group Holding Co.

Khalid Al Hossan, CEO of Saudi Tadawul Group Holding Co. (Tadawul Group), received over 50 applications from companies seeking to be listed on the Saudi stock market.

Addressing the SNB Capital Investment Tycoons Forum 2024, attended by Argaam, Al Hussan noted the large volume of Nomu listings over the last two years, which indicates that the market has begun to serve a fine segment of companies and investors.

He highlighted that Nomu is deemed one of the sound picks for many businesses, especially family-owned enterprises, that find the main market’s regulatory and legislative requirements challenging.

According to Al Hussan, additional financing options are being offered to potential market players, including initial public offerings (IPOs), secondary offerings, and debt instruments. He added that Saudi-listed companies adhere to straightforward legislative obligations, making them appealing to traditional banks given transparency and oversight, especially for medium and small companies.

Nomu’s sector diversity gives it strategic depth, the CEO explained, indicating that market liquidity since the beginning of this year has been strong to finance any size of possible downturns.

The market capitalization of the Saudi capital market surpassed SAR 10 trillion, with more than 300 listed companies. The Tadawul All Share Index (TASI) ended 2023 on a positive note, gaining more than 14% by the close of the last trading session.

In 2023, IPOs surpassed a total of SAR 13 billion for seven companies on TASI and 35 others on Nomu. Meanwhile, the volume of secondary offerings amounted to SAR 5 billion for nine companies, while private debt instrument issuances exceeded SAR 10 billion.

Elsewhere, Al Hussan highlighted the critical role of family businesses and their public listing in boosting the private sector's impact on economic growth. He stressed the importance of aligning listing processes with family businesses' growth needs, deeming it essential and healthy for the Kingdom’s economy.

He noted that Saudi family enterprises significantly contributed over SAR 800 billion to the Kingdom’s gross domestic product (GDP) in 2021, underscoring their importance to the national economy.