Saudi family-owned companies, long resistant to opening their books to outside shareholders, are lining up to list stakes as the country’s stock market booms, sometimes in the hope that bringing in outside investors will help them weather internal disputes.
Almunajem, one of Saudi Arabia’s largest food companies, in December became one such company to list on the bourse, known as the Tadawul, while the exchange was on a multiyear high. The Riyadh-headquartered group offered a 30 per cent stake which raised around $300m.
“It’s a very good move, at least to institutionalise the business from a governance and continuity perspective,” said chief executive Thamer Abanumay, a non-family member. The move should also help the company to “diversify our capital for growth”, he said.
Other family companies that listed last year include Theeb Rent a Car and Alkhorayef Water and Power Technologies. Nahdi Medical, the country’s largest pharmacy chain, has received regulatory approval to float shares.
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