Tadawul anticipates increased IPO activity: Al-Rumaih

Mohammed Al-Rumaih, CEO of Saudi Exchange

The Saudi Exchange (Tadawul) anticipates increased activity in subscriptions and offerings on the Main Market (TASI), Nomu-Parallel Market, and the Sukuk and Bonds Market, CEO Mohammed Al-Rumaih said.

Tadawul received 50 listing applications so far for all different types of markets, other than offering on TASI, he said in a statement to Al-Arabiya TV.

Al-Rumaih added that Tadawul is upbeat about the future amid positive figures and strong economic growth, especially in the non-oil sector.

He noted that qualified foreign investors were net buyers of shares worth about SAR 9 billion year-to-date, while the value of their ownership exceeded more than SAR 320 billion.

As for the year-on-year decline in the number of initial public offerings (IPOs) in the Saudi market in 2023, Al-Rumaih cited a 'wait-and-see' approach by the companies that received approval to offer their shares, as well as concerns about global events during the first quarter of this year.

These concerns include rising interest rates and their impact on liquidity. However, after the first IPO, which witnessed strong demand, companies were encouraged to proceed with their share offerings and there was an uptick in IPOs activity, he added.