30% of Tadawul Shares, shortly, to Go Public, to Raise SR3.9 billion

Saudi Stock Exchange Company (Tadawul) is heading to offer as much as 30% of its capital, “Maaal”, the leading Saudi online business daily sources confirmed, in a breakthrough.

The amount would make as much as SR1.2 billion, in figures, in the market, as the company is expected to announce the move, within a month.

The announcement is likely to coincide with the holding of the Future Investment Initiative (FII Conference), which will be held on the 26-27-29 of Oct.

The company’s valuation will range between ($3-$3.5 billion), i.e. between SR11.5 and SR13 billion, provided that the collected funds it intends to collect from subtracting the 30%, would range from SR3.4 billion to SR3.9 billion.

These funds shall go to the Public Investment Fund – the sovereign fund of Saudi Arabia – the owner of the company, and therefore may benefit from these funds by injecting them into new investments.

Tadawul Company is responsible for listing and trading securities for local and international investors, as it is the stock exchange concerned with trading activities and the official source for all information related to the financial market, in the Kingdom.

It also plays a pivotal role in achieving the group’s strategic growth plans and providing market participants with attractive and diversified investment opportunities.

“Tadawul Saudi Arabia” ranks the ninth largest financial market among the 67 global financial markets, that are members of the World Federation of Exchanges.

It is also ranked the largest financial market, across the Gulf region, and the third largest among its peers, in emerging markets. It is an associate member of the International Organization of Securities Commissions, the World Federation of Exchanges, and the Arab Federation of Exchanges. ‎

The Saudi Stock Exchange Company “Tadawul” was transferred into a holding group under the name “The Saudi Tadawul Group”, which includes under its umbrella four subsidiaries: “The Saudi Tadawul” as a stock exchange, The Securities Clearing Center Company “Muqassa”, the Securities Depository Center Company “Edaa” and the new Tadawul Advanced Solutions Company “Wamed” specialized in innovative technical services and solutions.
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The profits of the Saudi Tadawul Group for the Year 2020 after zakat, jumped by 227% to reach SR500.5 million, compared to SR153.3 million profits achieved in the Year 2019.

Group’s operating revenues increased by more than 91%, or SR1.1 billion in 2020, as a result of the increase in trading commissions, mainly by 141%, and operating costs increased by About 9% in the same period of the previous year to reach SR356 million, and this performance, supported by the increase in operating revenues, contributed to the growth of total profits by 203%, or SR723 million in 2020.

The Years 2020, 2019, 2018, 2017, 2016, retrospective revenues were (in million riyals) were respectively as follows: 1079.6, 564.7, 583.3, 545.4, 312.0.

Meanwhile the gross profit (in million riyals) were as follows: 723.2, 238.6, 284.8, 250.0, 111.7 respectively, and the net profit (in million riyals) 500.5, 153.3, 148.2, 145.3, and -29.3, respectively.

This comes at a time when Muhammad Al-Quwaiz, head of the Saudi Capital Market Authority, revealed weeks ago that the authority is working to list 30 new companies in the local stock market before the end of the Year 2021.

During the last period of the Year 2021, only 5 companies were listed, the last of which was the subscription of ACWA Power, which witnessed a historic turnout, with the funds collected exceeding SR1.1 trillion, before that, 24 million shares of “Solutions by” were offered, and they were covered by 13,004.7%, or more than 130 times.