Saudi stock market.. Reasons for delisting 17 companies ‎

The number of companies that have been delisted from the Saudi stock market “Tadawul” has reached 17, so far the last of them was SABB Takaful Company, after merging with Walaa Insurance Company. Wednesday corresponding to 10/19/2022 AD to start the procedures for canceling the listing of the company’s shares from the market, after the approval of the Extraordinary General Assembly on the offer submitted by Walaa Cooperative Insurance Company to acquire the shares of SABB Takaful Company shareholders through a securities exchange offer .

According to the monitoring of Maaal newspaper, the first company to be delisted from the Saudi stock market “Tadawul” was Hail Agricultural Company (Hadco), after Almarai Company acquired 100% of the shares of Hail Agricultural Development Company “Hadco”, and the company’s listing was cancelled on October 9, 2009.

The second company was Integrated Telecom, as a result of the issuance of a royal order in May 2013 to liquidate the Saudi Integrated Telecom Company, provided that a committee formed by the Ministry of Commerce and Industry, the Capital Market Authority and the Communications and Information Technology Commission would undertake the liquidation process of the company, and in April of 2014 A royal order was issued to compensate the non-founders of the Saudi Integrated Telecom Company, and the amount of compensation was 30 riyals per share.

Al-Moajil Group came as the third company to be delisted from the Saudi stock market, as the company was canceled in May 2017, after the Capital Market Authority called on the boards of directors and shareholders of listed companies whose losses amounted to 50% or more of their capital to correct the conditions of their companies before The expiry of the deadline for implementing Article 150 of the Companies Law, and the Authority’s announcement on 27/04/2017 regarding those companies.

In view of the failure of the Mohammed Al-Mojil Group Company to take the necessary legal measures to correct its situation in accordance with the Capital Market Law and its Executive Regulations and the Companies Law, and taking into account the provisions contained in Article one hundred and fifty of the Companies Law and the procedures that the company must take during the specified statutory periods . Due to the same factors that caused the cancellation of the Al-Moajil Group, the listing of the companies Sanad Insurance, Weqaya Insurance and Bisha were also canceled, and the 4 companies were canceled in May 2017.

According to the monitoring, the listing of 7 other companies was canceled due to merging with other companies, as Sahara Company was canceled in May 2019 after its acquisition by Sipchem, and Alawwal Bank was canceled in June 2019, as a result of SABB’s acquisition of its shares, and MetLife, AIG and the Arab Bank for Cooperative Insurance, were delisted in March 2020, after the company was acquired by Walaa Insurance Company.

In December 2020, the shares of Al-Ahlia Insurance Company were canceled after the merger with Gulf Union Company, and the shares of Solidarity Saudi Takaful Company were canceled in March 2021 after the merger with Al-Jazira Takaful Company. Samba Financial Group was canceled from the Saudi stock market, after the decision to merge with Al-Ahly Bank in April 2021, and Al-Ahly Takaful Company was canceled by the end of January 13, 2022 after the merger with the Arab Shield Insurance Company.

In November 2021, the listing of Al-Khodari Company, which the Capital Market Authority announced during its de-listing from the financial market, was canceled after a ruling was issued by the Commercial Appeals Court in Riyadh supporting the decision to end the financial reorganization procedure and open the liquidation procedure under the bankruptcy system.

Wafa Insurance Company was canceled, in May 2022, as the Capital Market Authority announced that it is a reference to the announcement of the Saudi Indian Company for Cooperative Insurance (Wafa Insurance) on May 23, 2022 AD that a decision was issued by the Commercial Court of Appeal in Riyadh to support the decision to terminate the reinsurance procedure, financial regulation and opening of the liquidation procedure under the bankruptcy system.

Based on the Capital Market Law issued by Royal Decree No. (M/30) dated 06/02/1424 AH, and sub-paragraph (15) of paragraph (A) of Article thirty-six of the listing rules, the Authority issued its decision to cancel the listing of the securities of the Saudi Indian Company for Cooperative Insurance (Wafa Insurance) on the Saudi Stock Exchange (Tadawul).