#Saudi Firms Continue With IPO Plans Unfazed by Market Volatility - Bloomberg

Saudi Firms Continue With IPO Plans Unfazed by Market Volatility - Bloomberg

Saudi Arabia is set to see a slew of companies test investor appetite for initial public offerings over the coming weeks, a sign that the kingdom’s deal pipeline is holding up so far despite the global market volatility fueled by US President Donald Trump’s tariffs.

Companies including Flynas, an airline backed by billionaire Prince Alwaleed bin Talal, and Ejada Systems, a fintech company owned by the one of the country’s biggest banks, are considering launching new share sales as early as this month, according to people familiar with the matter.

Hospital operator Specialized Medical Co. has also held discussions about potentially unveiling an IPO in coming weeks, some of the people said, declining to be named while discussing confidential information. The firm has spoken to investors over the past some days, the people said.

No final decisions have been made on the timing of any of these offerings, and plans could still change. Any new deals would follow Paper manufacturer United Carton Industries Co., which kicked off a listing on the local stock market Tuesday and is looking to raise up to $200 million, people familiar with the matter said.

Representatives for Flynas, Ejada, SMC and United Carton declined to comment.

Gym chain operator Sports Club Co., Al Majed Real Estate Co. and Marketing Home Group Co. also have regulatory approval to list in Saudi Arabia. Coffee chain Barn’s has, meanwhile, started work on an IPO in Riyadh as it seeks to expand its footprint in the Middle East.

The region has been a hub for listings over the past few years while volumes dropped globally. Bankers in the Gulf have said their deal pipelines for the quarter haven’t yet been impacted by market turbulence, adding that the region is relatively insulated from tariffs and linked to fast-growing economies.

While there was a brief consolidation in stocks after last week’s turmoil, traders are once again grappling with a slew of tariff headlines, including Trump launching a probe into the need for levies on critical minerals.

The flip flops have roiled global markets this month as investors struggle to take long-term positions due to the unpredictability of policy announcements from Washington.

The energy-exporting region — particularly Saudi Arabia — also faces a threat from lower oil prices.

Saudi companies have raised just under $2 billion so far this year with new listings, on the back of a $4 billion haul in 2024. Fifteen companies listed on the main bourse last year, the most since 2022, according to exchange operator Saudi Tadawul Group.