Saudi Tadawul Group IPO to add strategic dimension to realize objectives, boost capital market: Al-Hussan

Saudi Tadawul Group CEO Khalid Al-Hussan

The planned initial public offering (IPO) of Saudi Tadawul Group (STG) shows its great ambitions, and the listing will provide an important strategic dimension to realize the company’s objectives, Chief Executive Officer (CEO) Khalid Al-Hussan said in a statement today, Nov. 7.

He added that the move will increase the Saudi capital market’s sophistication and cement its position as the regional center for capital formation and a globally competitive and attractive investment destination.

"It will serve to further enhance our corporate governance practices and enable us to leverage our integrated subsidiary model to provide a platform for investors to gain exposure to the Saudi economy," Al-Hussan said.

Chairperson Sarah Al-Suhaimi also said the IPO announcement marks a major milestone in the company’s growth story and is the natural next step as the group emerges as a Saudi powerhouse with a global mindset that can leverage scale, innovation and execution capabilities to drive long-term value for all shareholders.

This will help achieve the nationwide goal of the successful delivery of Vision 2030 and align it with the strategy of the Public Investment Fund (PIF), she added.

SNB Capital, JP Morgan Saudi Arabia and Citigroup Saudi Arabia -- in their capacity as the lead managers, financial advisors, global coordinators and underwriters -- announced that the company plans to proceed with its IPO and listing on the main market.

The offering price will be set after completing the book building process.

Update on offering process:

STG obtained the approval the Capital Market Authority (CMA) on Nov. 3, to float 36 million ordinary shares, or 30% of its share capital amounting to 120 million shares. The IPO will be implemented through offering the shares owned by PIF, the sole shareholder.

The company will be listed on the main market after completing all relevant procedures with the CMA and Tadawul.

The shares will be floated for individual and institutional investors, including foreign financial institutions, which are located outside the US, as per the Regulation S (RegS) under the US Securities Act of 1933, as amended.

All shares will be offered to institutional investors, with a clawback to retail investors of up to 10% of the offered shares.

The group includes four subsidiaries, namely the Saudi Exchange (Tadawul), Securities Clearing Center (Muqassa), Securities Depository Center (Edaa) and Wamid. It also owns 33.12% of Tadawul Real Estate, according to data available with Argaam.

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