Tadawul Stock Price, to Fall in the Region of SR90-100 -Maaal Forecast

Saudi Tadawul Group expected to offer 36 million shares for public subscription this month, Maaal, the leading Saudi online daily revealed that the price of the company’s share to investor will be close to SR90-100 (+ or -).

The group is expected to seek to raise about SR3.5 billion (+ or -) from the initial offering, in the Saudi exchange, which is expected to be completed at the end of this month, specifically meaning that the share price may fall, at SR97, according to “Maaal” estimates.

Tadawul stock exchange ranks the 9^th largest financial market among the 67 global financial markets, that are members of the World Federation of Exchanges.

It is also classified as the largest financial market in the Middle East, and the third largest financial market, among its peers, in emerging markets.

At the end of 2020, the Tadawul Group posted a profit per share of about SR4.2, as the company made SR500 million of profits, at the end of last year, or a P/E Ratio profit average of 25 times, putting the share price in the region of SR100, which will be squarely fair.

It is expected that “Tadawul” will resort to choosing that figure as an initial price for the company’s offering, in sympathy with the dividends of other companies, that offered their shares during the last period, some of which exceeded that P/E Ratio a lot.

Saudi Tadawul group will not resort to exaggerating the price of its stock, or requesting a large issuance premium, and therefore the share price, on going public, is forecast to fall in the range of SR90-100, “Maaal” follow up analysis concluded.

To infer this is the Tadawul Group’s keenness on the participation of everyone, specifically individuals, in the expected subscription after raising the quota for individuals to 30% of the offering shares, instead of 10%, in response to the requests of a number of individuals, wishing to contribute more to the subscription, which is expected to witness a large turnout.

Indicators point to a record subscription by institutions and investors, and it is expected that the deal will be priced at the maximum price range that will be announced later.

The process of building the order book for institutions will start on 21-26 November.

Tadawul had announced intention to offer 30% of its shares in the Saudi stock exchange, with the possibility of allocating 10% of the total offering to individuals, before raising the percentage, later, to 30%, in order that the expected share of institutions would reach 70% of the volume of offered shares, which does not comply with IPOs.

Previously, the distribution of which was 10% for individuals compared to 90% for institutions.

Profit of the Saudi Tadawul Group for the Year 2020, after zakat, increased by 227% to reach SR500.5 million, compared to SR153.3 million in the Year 2019. Trading commissions increased, mainly by 141%, and operating costs increased by almost 9% in the same period of the previous year to reach SR356 million.

This performance, supported by the increase in operating revenues, contributed to the growth of total profits by 203% to SR723 million, in 2020.

The revenues of the Tadawul Group jumped to SR908.5 million, at the end of the first 9-month of this year, an increase of 30.3% from the revenues of the same period of the previous Year 2020, which was SR698.5 million, while the consolidated profits rose to SR477.2 million, a rate of growth at 38% compared to the profits in the 9-month, of the Year 2020, which was SR346.9 million.

On the other hand, the profits of the Tadawul Group decreased to SR115.2 million, at the end of the third quarter of this year, a rate of 13.3% compared to the profits of the same quarter of the previous year, which was SR133 million, despite the increase in revenues during the three months ending in September 2021, at SR262.64 million, with an increase of about SR600,000 compared to the third quarter of 2020, whose revenues were SR262 million.

According to the Tadawul Group, revenues from trading services amounted to SR326.75 million, at the end of the nine months ending, in September 2021, while listing fees amounted to SR56.6 million, technology and data services made SR70.8 million and post-trading services posted SR454.4 million.

The Saudi 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 market in the Kingdom.

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

The Saudi Stock Exchange Company “Tadawul” was transferred into a holding group called “The Saudi Tadawul Group” that includes under its umbrella 5 subsidiaries: “The Saudi Tadawul” as a stock exchange, the Securities Clearing Center Company “Muqassa” the Securities Depository Center Company “Edaa” and Tadawul Advanced Solutions Company “Wamed”, specializes in innovative technical services and solutions, in addition to Tadawul Real Estate Company, which is 33.12% owned by Tadawul Group and is a limited liability company, working in the field of real estate management and development.

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