Tadawul IPO Shares’ Volume Allotted to Retail Investors, Increased

The volume of offered shares that may be allocated to individual subscribers, is set to be increased from a maximum of three million six hundred thousand (3,600,000) shares, equivalent to ten percent (10%) of the total offered shares to a maximum of ten million eight hundred thousand (10.800,000) shares, Saudi Tadawul Group Holding Company, the leading group in the Middle East and North Africa’s stock exchange, announced.

The decision was made to give individual subscribers a better chance, to profit from the Saudi Tadawul Group’s first public offering, as well as a part of the group’s efforts to create investment options for all of investors’ categories, in the Saudi Tadawul.

Through this modification in the offering structure, we want to provide ample opportunity for all categories of investors, in the Saudi financial market, said Eng. Khaled Al-Hussan, CEO of Saudi Tadawul Group Company.

No doubt, the continued increase in individual investor demand for subscription to initial public offerings this year, in the Kingdom, is an incentive for the company to diversify its shareholder base, following the listing,” he added.

Individual investors have always been a priority for the Saudi Tadawul Group, and we have worked over the past years, through all of the group’s subsidiaries, to provide attractive and diversified investment opportunities and create a balanced investment environment, that supports the aspirations of this segment of investors, who represent a wide traders base, Al-Hussan elaborated.

The company received approval from the Capital Market Authority on November 3, 2021, for the initial public offering, which includes selling existing shares by the Investment Fund Public (PIF) or the “Seller Shareholder” offering 36,000,000 ordinary shares (“Offering Shares”), representing 30% of the company’s total capital.

At the completion of the book-building period, the final offer price for the offer shares shall be set.

Tadawul group has issued a supplementary prospectus, on November 09, 2021, that included a number of revisions to the first prospectus, to reflect the increase in shares assigned to individual subscribers as previously stated.

 The supplementary prospectus is available on the Capital Market Authority’s website as well as the company’s website’s page, dedicated to the initial public offering (IPO) process.