Saudi Arabia Is Delaying Stock Exchange IPO on Higher Valuation Hopes - Bloomberg

Saudi Arabia Is Delaying Stock Exchange IPO on Higher Valuation Hopes - Bloomberg:

"Saudi Arabia is delaying the initial public offering of its stock exchange on hopes that a potential MSCI Inc. upgrade could boost its value, according to people with knowledge of the matter.


The Tadawul, as the Middle East’s biggest stock exchange is known, has pushed back plans to sell shares to 2019 at the earliest, from this year, said the people, asking not to be identified because the information is private.

Waiting until after a possible classification as an emerging market in June could improve trading volumes and help the bourse achieve a better valuation for its owner, the Public Investment Fund, they said.

The exchange’s main stock gauge, the Tadawul All Share Index, is among the world’s top 10 best performers this year after FTSE Russell classified the country as a secondary emerging market in March. That helped boost the gauge’s 12-month price-to-earnings ratio to the highest since 2015, the most expensive compared to emerging-market stocks in almost
three years.

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