Tadawul raises $4.7bn through 27 new listings in H1 amid healthy pipeline


RIYADH: Saudi Arabia’s stock market saw significant growth in listings in the first half of 2022, with initial public offerings on the main index alone raising SR15.2 billion ($4 billion).

Along with 10 record listings, TASI witnessed nine further offerings from existing listed companies, generating SR10.7 billion, a report by the Saudi Exchange shows.

This year’s biggest IPOs were pharma chain operator Nahdi Medical Co., Public Investment Fund’s digital security firm Elm Co., and Aldawaa Medical Services Co.

Nahdi topped the list with a SR5.12 billion IPO on Saudi Arabia’s main market, followed by Elm with SR3.07 billion in proceeds. Aldawaa raised almost SR1.86 billion.

Among the major listings were also Al Masane Al Kobra Mining Co. and Retal Urban Development Co. which raised SR1.25 billion and SR1.44 billion, respectively.

On the Nomu parallel market, a total of 10 IPOs raised SR2.4 billion in proceeds, combined with seven direct listings.

Online food delivery platform Jahez International Co. for Information System and Technology joined Nomu in early 2022, after raising SR1.6 billion in proceeds.

“These new listings reflect the continued strength and attractiveness of the Saudi Exchange markets across the MENA region as well as our strategy to offer companies a choice of routes to market,” said Nayef Al-Athel, chief of listing at Tadawul.

He added: “As we look ahead to the rest of 2022, there remains a healthy pipeline of companies looking to join our markets and we look forward to providing an update in our next listings report.”

When it comes to index performance, TASI outperformed in the first half of 2022 as it rose 4.9 percent from the same period in 2021.

This was mainly buoyed by strong market movements across the utilities, energy, and healthcare sectors.

Pharma and consumer durables, on the other hand, were the lowest performing stocks during the six-month period.

“Following landmark IPOs in 2021, including the IPO of our parent company, the Saudi Tadawul Group Holding Company, we implemented a series of market enhancements and announced new initiatives that have attracted many issuers to the Saudi capital market,” CEO of Tadawul Mohammed Al Rumaih commented.

He added: “Looking ahead to the rest of 2022, we will continue to improve our infrastructure, support our listed companies, and ensure that the Saudi capital market is the venue of choice for local and regional issuers.”

The Capital Market Authority’s chairman, Mohamed El Kuwaiz, told CNBC Arabia: “Today we have around 80 applications for listing on the Saudi Exchange.”