The Saudi Arabian Stock Exchange has just received approval for its Initial Public Offering (IPO) by the kingdom’s markets regulator. Saudi Tadawul’s stock market debut is scheduled for December and will offer 30% of its stake, 36 million shares , as explained by Khalid Al Hussan, CEO of the company.
“The IPO is a continuation of our transformation,” he said. In addition, the offer should give him “better exposure and access to investors.” SNB, JP Morgan and Citigroup are the global coordinators and underwriters of the operation.
The operation could be one of the largest in the stock market
Tadawul could go public in a $ 3-4 billion deal , according to people close to the offering interviewed by Bloomberg . In 2014, Euronext reached a value of $ 1.2 billion.
The CEO of Saudi Tadawul pointed out that the subscription to the offer for institutional investors will begin on November 21 and for private investors it will begin on November 30.
Al Hussan also explained that the company will distribute 70% of the profits as a dividend . However, you will be able to keep these benefits when you are working on growth projects and want to keep the cash to help finance them. All proceeds from the initial offering will be collected by the Public Investment Fund.