TASI: Receiving entities limited to brokerage firms for first time

Logo of Saudi Exchange

Over the years in the Saudi IPO market, the receiving entities were confined to banks and banking, excluding a few public offerings of REITs or some companies that included a brokerage such as that of Saudi Manpower Solutions Co. (SMASCO), along with the IPO of Scientific and Medical Equipment House Co. (Equipment House (a brokerage firm alongside banks and financial entities).

However, for the first time ever, the list of receiving entities of an IPO is limited to brokerage firms only — Tamkeen Human Resources Co.’s TASI IPO last week included 14 brokerage firms.

The list of receiving entities included Saudi Fransi Capital, Al Rajhi Capital, SNB Capital, Riyad Capital, Albilad Capital, AlJazira Capital, Alistithmar Capital, Derayah Financial, Alinma Investment, ANB Capital, Yaqeen Capital, Alkhabeer Capital, SAB Invest and Sahm Capital.

United International Holding Co.’s IPO, which will take place on Nov. 19, will also be handled through the same receiving entities.

In this respect, Argaam polled some of these financial institutions, whereby Al Rajhi Capital explained that the IPO unlocks great prospects for subscribers as subscription is permitted through any financial institution, thus eliminating the need to open new accounts with different banking entities.

The brokerage firm added that the process of opening new investment accounts and portfolios has been streamlined as the relevant procedures only require the ID number, devoid of the requirement to open an account with Al Rajhi Bank.