MANAMA: Mahmood Rafique, Editor: The Kingdom of Saudi Arabia has topped the ladder in IPO’s listings in the first half of the year, a latest report reveals.
The Kingdom’s leadership in IPO’s listing is in large part driven by government efforts to broaden its capital markets and boost privatization in key sectors such as healthcare, financial services, energy and industrials. It has also relaxed rules around foreign ownership.
Saudi Arabia’s lead is in large part driven by government efforts to broaden its capital markets and boost privatization in key sectors such as healthcare, financial services, energy and industrials. It has also relaxed rules around foreign ownership.
Saudi Arabia was the top hub for IPOs in the Gulf Cooperation Council (GCC) in the first half, S&P Global Market Intelligence data showed.
About $3.5 billion was raised from IPOs in the GCC in the first half, comprising $900 million in the first quarter and $2.6 billion in the second, according to Market Intelligence data. This was down from $5.6 billion in the first half of 2023.
Companies that floated in Saudi raised roughly $2.10 billion from January to June, accounting for more than half of the total amount of money raised from IPOs in the region. About $1.32 billion was also raised in the United Arab Emirates and another roughly $150 million in Kuwait for a total of approximately $3.57 billion.
All in all, there were 23 IPOs in the first half, compared with 49 in the last year.
Net foreign investments in the country’s main capital market amounted to 198 billion Saudi Arabian riyals, according to regulatory figures. The value of foreign investors’ ownership in the market also amounted to 401 billion riyals. The largest listing by size during the first six months was Jeddah-based hospital group Dr. Soliman Abdel Kader Fakeeh Hospital Co., which raised about $763.5 million in late May. It was one of six Saudi Arabian IPOs in among the 10 largest transactions in the region in the first half. There were three UAE transactions in the top 10.
The hospital group’s IPO sold out in hours, attracting orders of more than $91 billion.
More IPOs are in the pipeline in Saudi Arabia, with Saudi Stock Exchange (Tadawul) Co. There are more than 10 companies that have been approved and are merely waiting for listing and offering dates to be determined. More than 50 companies have also applied to float.
