Tadawul likely to see more dual listings in 2023: Official

Nayef Al-Athel, Chief of Listing at Saudi Exchange

The Saudi Exchange (Tadawul) is expected to see more dual listings next year, Chief of Listing at Tadawul, Nayef Al-Athel, said, revealing that several foreign firms have already applied.

Legislations for listing Saudi firms in foreign markets are available, Al-Athel told Asharq News, adding that coverage ratios and liquidity ratios on Tadawul are all healthy and strong, driving local listings momentum.

Initial public offerings (IPO) are healthy and promising in the Saudi market, as more than 70 applications are currently under study by Tadawul and the Capital Market Authority (CMA).

Al-Athel explained that Tadawul is working on creating a global investment destination and hub going forward for the companies willing to list their shares, by enhancing legislative and regulatory rules, in coordination with the CMA to attract regional and foreign listings.

Commenting on securities prices, the top official pointed to flexibility in Tadawul and Abu Dhabi Securities Exchange (ADX) that enable investors to sell the securities they own in the Saudi market on ADX, and vice versa, despite some price differences, offer and demand in both markets, which adjust these price gaps.

On the share allocation method in dual listings, Al-Athel explained that Tadawul and the CMA do not intervene with the share allocation decisions. Issuers or firms that are seeking to list shares, along with their financial advisors, have the right to choose the optimal share allocation.

The Saudi official revealed that there are talks for cooperation and agreements with other countries in the GCC and MENA region for dual listings.

Recently, Americana Restaurants International Plc (Americana Restaurants) was offered at AED 2 on ADX and at SAR 2.68 on Tadawul. Americana allocated no less than 1,000 shares for each retail subscriber in the UAE, and no less than 892 shares to Saudi individual investors, Argaam reported.

The company is expected to begin trading on ADX and Tadawul on Dec. 12.

For More IPOs