The CEO of the Saudi Arabian Stock Exchange stated that the exchange will be listed for the first time next month after beginning the process of selling 30% of the shares.
“Our goal is to list the company in the first week of December,” Khalid Al Hussan said in an interview on Sunday. “The initial public offering is a continuation of our transformation,” he said, adding that the offering should give it “better exposure and access to investors.”
The Saudi market regulator approved the 36 million shares issued by Saudi Tadawul Group Holding last week. SNB Capital, JP Morgan Chase and Citigroup are the global coordinators and underwriters of the IPO.
According to people familiar with the matter, the issuance may be one of the largest exchanges since Euronext NV was listed at US$1.2 billion in 2014, and may have valued the exchange between US$3 billion and US$4 billion. Said last month.
The exchange will provide all shares to institutional investors and up to 10% of shares to retail investors. Al Hussan stated that institutional IPO subscriptions will begin on November 21, and individual IPO subscriptions will begin on November 30.
In addition, Al Hussan stated that the exchange’s clearing house is expected to be fully operational in early 2022.
“We also expect that our clearing house will be fully launched in the first half of next year, which will increase the revenue from the introduction of clearing services to the market,” he added.
He added that Tadawul will distribute 70% of its proceeds as dividends unless it is committed to growth projects and wants to retain cash to help fund these projects.
The CEO also said:
- All IPO proceeds will be collected by its sole shareholder public investment fund
- See a “special number” of listings in the next 12 to 18 months
- Cooperate with Gulf companies in Abu Dhabi, Kuwait and Bahrain for cross-listing; first cross-listing next year
- Revenue in 9 months was 900 million riyals (240 million US dollars)
- The nine-month profit was 477 million riyals, compared to 346 million riyals a year ago.
