The Saudi Stock Exchange (Tadawul) offering could value the bourse at between $3bn and $4bn, making it the biggest stock exchange in the Middle East.
According to its chief executive officer, Saudi Arabia’s Stock Exchange (Tadawul) will make its trading debut in December after selling a 30 percent stake in an initial public offering.
Last week, the kingdom’s markets regulator approved the Saudi Tadawul Group’s offering of 36 million shares, with SNB Capital, JPMorgan Chase & Co., and Citigroup Inc. as the IPO’s global coordinators and underwriters.
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The IPO, the biggest since Euronext NV’s $1.2 billion listing in 2014, is expected to value the bourse at $3bn to $4bn.
Detailing the progress so far, Al Hussan said the exchange’s clearinghouse was on course to begin operations in early 2022 and its full activation of our clearinghouse by the first half of next year, he added.
Tadawul will distribute 70 percent of earnings as a dividend unless it’s working on growth projects and wants to keep the cash to help fund those, he added.
The CEO also said:
- All IPO proceeds will go to the Public Investment Fund, the sole shareholder
- Expects “high number” of listings within 12-to-18 months
- Working with Gulf companies in Abu Dhabi, Kuwait, and Bahrain for cross-listing; expected first cross-listing by next year
- 9-month revenue at SR900 million ($240m)
- 9-month profit at SR477m against SR346m a year ago