The Saudi Tadawul Group elevated on its trading debut in Riyadh after the stock exchange raised USD 1 billion from an overly subscribed initial public offering.
The Saudi Tadawul Group IPO
The shares unlocked at SAR 115.4 on 8th December 2021 (Wednesday) before surging to as much as 22% to SAR 127.6. The Saudi Tadawul Group established the IPO price at SAR 105 per share, the peak of a suggestive range, after enticing SAR 458 billion (USD 122.08 billion) of orders from stakeholders.
The Saudi Tadawul Group IPO is deemed to be the kingdom’s second-largest in 2021 after the USD 1.2 billion listing of ACWA Power International in October 2021. The former arrives as Middle Eastern nations amplify their efforts to sell stocks in private firms and enhance liquidity on their share markets.
Saudi Arabia has been the leader in the area, with the stock listings of ACWA Power and Saudi Telecom Company’s internet services wing – both illustrating awe-inspiring investor demand and elevating by the daily limit of their foremost day of trade. Abu Dhabi has also witnessed an IPO boost, whilst Dubai has declared plans to list around 10 state-possessed firms.
Throughout the globe, stock sales have boosted for the foremost time owing to plentiful liquidity and resilient stock markets, surging to a record USD 616 billion so far this year, despite the emergence of crevices in recent months as inflationary pressures balance on equities.
Saudi Tadawul Group’s IPO has been brainstormed since at least 2016 when it hired HSBC Holdings Plc as a consultant. It put the subscription on hold whilst the exchange underwent a procedure of enhancing access for foreign investors and then established the listing of Aramco in 2019, which was the world’s most magnanimous ever.
The procedure was recommenced in early 2021 and the Saudi Tadawul Group substituted HSBC with Citigroup Inc., SNB Capital, and JPMorgan Chase & Co. as financial advisers and international coordinators. Since Euronext’s USD 1.2 billion IPO in 2014, it is established to be the largest offering in the exchanges segment.