Tadawul IPO 442.53% oversubscribed to reach $1.3bn
Saudi stock market shrugs off early December gains, Tadawul All-Share Index down 1.1 percent
Shares of Tadawul group will begin trading on the main market on Wednesday, Dec. 8.
The stock will have a 30 percent daily price fluctuation limit and 10 percent static price fluctuation limit, according to the company’s filing.
The individual subscribers tranche of Tadawul’s initial public offering was 442.53 percent oversubscribed with a total demand of SR5.02 billion ($1.3 billion).
The stock exchange group was offering 10.8 million shares to individual investors, or 30 percent
of the total offer shares at a final price of SR105. Around 598,327 subscribers participated in the period, which started on Nov. 30.
Saudi Arabia is seeing record interest from companies to sell shares to the public. The increase in the volume of assets under management had impact on the financial market and has contributed to opening new investments areas such as the launch of financial derivatives market, which made a debut last year.
Saudi Arabia is implementing a huge program to modernize and develop its financial sector under the country’s Vision 2030 plan. Under this program, the CMA had a target to list 20 new companies in 2021 on the Saudi index through public offerings, and the authority had achieved half of this target by the end of the first half of the year.
Daily trade
Saudi’s main and parallel indexes, TASI and Nomu, fell at Monday’s closing bell following a three-day hike, down 1.09 percent and 1.65 percent respectively. TASI jumped almost 140 points in early trading before closing at 11021.07 points.
Monday’s trading session was led by Sadr Logistics and Wafrah for Industry and Development Co., rising by 9.98 percent.
Sadr Logistics is now traded at SR94.8 ($25.27), marking an all-time high for the company.
stc was one of the lowestperforming stocks with a decline of 5.34 percent to SR110.
SABIC was down to SR110.4.
Al Rajhi Bank fell approximately 1 percent to reach SR137. The bank negotiated three deals worth SR28.5 million today.
Nayifat Finance Co. announced the distribution of cash dividends for the second and third quarters of 2021 at 7.5 percent of the share value.
The Capital Market Authority approved Amana Cooperative Insurance Co.’s request to increase its capital to around SR288 million by issuing 15 million ordinary shares.
The capital raised is earmarked for merging Saudi Enaya Cooperative Insurance Co. into Amana Insurance.
The Company for Cooperative Insurance, or Tawuniya, received a firm order from The Saudi National Bank to provide health insurance services for bank employees and their families.
Saudi Arabia is seeing a record interests from companies to sell shares to the public.