Wednesday 7 April 2021

#Saudi Stock Exchange Targets IPO, Revamps Corporate Structure - Bloomberg

Saudi Stock Exchange Targets IPO, Revamps Corporate Structure - Bloomberg

Saudi Arabia’s stock exchange, the largest in the Middle East, announced a reorganization of its corporate structure as it prepares for a highly anticipated initial public offering this year.

The newly created Saudi Tadawul Group will have four subsidiaries, comprising the exchange, a clearing center, a depository company and a technology-services business. The changes create the “necessary platform” to strengthen the group’s infrastructure before the IPO this year, company officials said in a virtual event Wednesday.

Saudi Arabia has been the hottest market for IPOs in the Middle East over the past two years, with new offerings oversubscribed, mostly by local retail and institutional investors. In 2019, the bourse hosted the $29 billion offering of the world’s biggest oil producer, Saudi Aramco, with shares being sold mostly to Saudi investors seeking guaranteed dividends.



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