‎”Maaal” sources confirm.. “Tadawul” directly receives ‎subscription requests for offered companies and investors’ ‎funds ‎

“Maaal” said citing sources that “Tadawul” group will be allowed to receive applications for those wishing to subscribe to companies offered to investors in a public offering directly, instead of the method currently used for capital companies receiving subscription applications through the obligation to open investment portfolios with these companies. The sources, who spoke to “Maaal” on condition of anonymity, indicated that receiving “Tadawul” subscription requests will help subscribers to unify their investment portfolios instead of distributing them to more than one financial company, and thus they will be able to enter into subscriptions directly.

As the current practice is to track the offered companies and know the capital companies that receive the applications, and then open an investment portfolio with them if its investment portfolio is not with the capital receiving the subscription, which increased the number of investment portfolios and led to a kind of confusion for investors in managing their portfolios.

According to the data, “Tadawul” will receive the subscription application from the portfolio of the client wishing to subscribe to the offered company according to arrangements that will be announced later, provided that the investor transfers the amount to the “Tadawul” account, and later the surplus is returned to his investment account and the allocated shares are deposited in his own portfolio with the capital company that he deals with. The sources pointed out that this important step will be implemented in the near future. It is expected to help increase Tadawul revenues, which is expected to invest cash before allocating shares and returning the surplus, as is the practice of capital companies at the present time.

According to “Maaal” Survey, about 13 subscriptions were made in the Saudi stock market, “Tadawul” during the period of the current year 2022, with accumulated funds amounting to 22.6 billion riyals, by offering 283.5 million shares, and 8.6 million individuals contributed to the subscriptions, with accumulated funds amounting to SR 42.5 billion.

During the period, 9 of the 10 banks listed in the Saudi stock market participated as recipients of the 9 subscriptions, led by Riyad Bank, whose participation amounted to 11 out of 13 subscriptions that took place during the year, and the National Bank of Saudi Arabia ranked second in terms of subscriptions with 10 subscriptions. Then Al-Rajhi Bank with 9 subscriptions, then the Arab Bank with 4 subscriptions, and SABB and the French Bank with two subscriptions, and a single subscription for each of Al-Jazira Bank, Al-Bilad, the Saudi Investment Bank and Al-Jazira Capital Company, while Alinma Bank did not participate in any subscription that took place during the current year 2022.

On the other hand, Al-Nahdi Company topped in terms of the number of banks receiving subscriptions with 5 banks, followed by “Murafeq”, “Elm”, “Al-Dawa” and “Dar Al-Maqida” with 4 recipients, while the number of receiving entities reached 3 for both “Arabian Drilling” and “Arabian Drilling” “Retal”, “The Great Factories”, “Al-Amar”, the perfect offer (TUBI) and “Saudi Home Finance”, and Naqi Company appointed two parties to receive the subscriptions, while the National Bank of Saudi Arabia was the only receiving party for the subscription of the East Pipe Company.

Based on the survey, 9 companies were offered for public subscription, during the year 2021, the proceeds of their subscription amounted to 17.2 billion riyals, as 235.6 million shares were offered for all initial public offering companies. More than 4.7 million individuals participated in those 9 subscriptions, by pumping amounts that exceeded 31.7 billion riyals, before the shares were allocated, and the surplus was returned, with a large number of coverage times. On the other hand, 9 of the 10 banks listed in the Saudi stock market participated as recipients of the 9 subscriptions, issued by Al-Ahly Bank of Saudi Arabia and Riyadh, whose participation amounted to 7 subscriptions out of 9 subscriptions that took place during the year, and came in second place in terms of entities receiving subscriptions, Al-Rajhi Bank and Bank SABB with 5 each, then Banque Saudi Fransi with 3 subscriptions, Bank Albilad and Alinma Bank with two subscriptions, and one subscription for both Al-Jazira and Al-Arabi Banks, while the Saudi Investment Bank did not participate in any subscription that took place in the year 2021.

On the other hand, Solutions Company topped in terms of the number of banks receiving subscriptions with 6 banks, followed by Tadawul Group with 5 recipients, then “Aqua Power”, “Arabia for Technical Contracting” and “Nayifat” with 4 recipients, while the number of recipients reached 3 for each of ” Al-Munajim, Al-Khorayef and Theeb, while Banque Saudi Fransi was the sole recipient of the food development company’s subscription.