Friday, 29 March 2024

With fair share price, earnings through 2023

Multiple Growth Potential for Tadawul -Al-Jazira Capital Outlook

FacebookTwitterWhatsAppTelegram

اقرأ المزيد

Tadawul Group is well positioned to achieve the Kingdom Vision 2030 goals, grace to the Kingdom’s growing international presence, which would  help the group establish itself as a leading stock exchange, in the Middle East and North Africa region and as a major regional capital formation hub, Al Jazira Capital expected.

The Kingdom’s economic future, supported by Vision 2030 and expanding worldwide recognition, shows that the firm has much development potential, in terms of releasing new asset classes and vigorous financial market activity.

Al Jazira Capital set a fair price for Tadawul Group, at SR113 per share, up 7.6% from the subscription price, noting that the economic prospects and capital market, bolstered by structural changes in the financial sector, would provide a positive incentive for the Tadawul Group’s future growth, as the company is the country’s only capital exchange operator.

As a result, it is projected to gain directly from the rise in financial market activity, besides that the operating leverage, in business, is expected to be reflected in the expansion of the company’s margin as commercial activity increases.

With an estimated profitability multiple of 17 times for the Year 2023 compared to the IPO price, the group’s value seems attractive compared to its worldwide counterparts.

Saudi Tadawul Group’s earnings would climb to SR632 million by the end of 2021, up 26.4 % from SR501 million, in 2020, then rise to SR719 million, in 2022, reaching as much as SR741 million, in 2023.

Tadawul Group’s revenues grew at a compound annual rate, during the time span from 2018 to 2020, at a rate of 36.1%, and are expected to rise more ,at a compound annual rate, during the period from 2020 to 2023 by 11.4%, Al-Jazira Capital expected, adding that most of Tadawul Group’s revenues come from Edaa company, which contributed 47% to revenues.

In the Year 2020, the contribution of market sectors was 42%, market information scored 10%, while derivatives and clearing contribution stood, at only 1%, it explained, adding that market revenues have increased by 104.8% in the Year 2020, while deposit revenues increased and market information grew by 81.6% and  83.4%, respectively.

The Saudi Tadawul Group Holding company’s shares will be listed and traded on the main market, with a local code: 1111 and the an international code: SA15DHKGHBH4, starting on Wednesday, December 8, 2021, provided that the daily price fluctuation limits are +/-30%, with the application of fixed price fluctuation limits of +/-10%.

These limitations shall only apply for the first three trading days, following the listing, then the daily price volatility limits shall be reset to +/-10%t, however the fixed volatility limits will be removed.

Related



More