RIYADH: Tadawul, the Riyadh stock exchange, would like to stage an initial public offering (IPO) of Saudi Aramco on its own, rather than be part of a global offering with other markets, its chief executive said this week at the Future Investment Initiative (FII) in Riyadh.
Khalid Al-Hussan told the Financial Times on the sidelines of the conference that he wanted the exchange to be the “exclusive” listing venue for an Aramco IPO. “Our aspiration for Tadawul, as the main exchange in the region, is to be the exclusive venue for Aramco. We are doing what it takes to make sure Aramco is listed here (in Saudi Arabia) only. We aim and work hard to be the exclusive listing venue,” he said.
An adviser close to the Tadawul confirmed to Arab News the accuracy of the report, but declined to comment further. More details are expected to emerge at the FII gathering on Thursday, the source added.
“This will change the position of the Saudi stock exchange and the Saudi capital market on the exchange global map,” Al-Hussan said.
If Aramco were to decide on a Tadawul listing only, it would be a challenge for an IPO slated as the biggest in history. The flotation of 5 percent of the company at its official valuation of $2 trillion would be worth $100 billion and would be by far the biggest stock on the Saudi market, which is capitalized at a total of $440 billion.
It would also be a blow to the ambitions of New York, London and Hong Kong to host the record-breaking IPO. Armies of investment bankers, lawyers and consultants had been looking at hundreds of millions of dollars in fees from the IPO.
The suggestion that the IPO might be kept in the Kingdom is a further complication after a spate of reports that Aramco was considering a trade sale to Asian investors as preparation for a global IPO later down the line as one of a range of options for privatizing part of Aramco.
The IPO is regarded as the cornerstone of the Vision 2030 strategy to reduce the Kingdom’s economic dependence on oil. A spokesman for Aramco declined to comment on Hussan’s statements.
Amin Nasser, Aramco chief executive officer, said on Tuesday that the company was on track for an IPO in 2018.
He added that domestic and international exchanges were being considered for the transaction, but that a final decision was the responsibility of the Saudi government.
“All detailed information is currently being reviewed by our shareholder and in due course a decision will be made about the lasting venue,” he said.
One bank adviser to the Saudi government, requesting anonymity, said: “$100 billion would be too much for the Tadawul to take in one go, but they (the government) retain the option to offer a smaller portion and sell some of the rest later, either on a global market or to a trade partner. The options are not limited to a one-off IPO.”
Saudi stock exchange wants ‘exclusive’ Aramco listing
Saudi stock exchange wants ‘exclusive’ Aramco listing
Industry leaders highlight Riyadh’s Metro, infrastructure as investment catalysts
RIYADH: Saudi Arabia’s capital, Riyadh, is experiencing a transformative phase in its real estate sector, with the construction market projected to reach approximately $100 billion in 2025, accompanied by an anticipated annual growth rate of 5.4 percent through 2029.
The Kingdom is simultaneously advancing its data center capacity at an accelerated pace, with an impressive 2.7 GW currently in the pipeline. This expansion underscores the critical role of strategic land and power planning in establishing national infrastructure as a cornerstone of economic growth.
These insights were shared by leading industry experts during JLL’s recent client event in Riyadh, which focused on the city’s macroeconomic landscape and emerging trends across office, residential, retail, hospitality, and pioneering sectors, including AI infrastructure and Transit-Oriented Development.
Saud Al-Sulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, commented: “Riyadh is positioned at the forefront of Saudi Arabia’s Vision 2030, offering unparalleled opportunities for both investors and developers. National priorities are continuously recalibrated to ensure strategic alignment of projects and foster deeper collaboration with the private sector.”
He added: “Recent regulatory developments, including the introduction of the White Land Tax and the rent freeze, are designed to stabilize the market and are expected to drive renewed focus on delivering premium-quality assets. This dynamic environment, coupled with evolving construction cost considerations in select segments, is fundamentally reshaping the market landscape while accelerating progress toward our national objectives.”
The event further underscored the transformative impact of infrastructure initiatives. Mireille Azzam Vidjen, Head of Consulting for the Middle East and Africa at JLL, highlighted Riyadh’s transit revolution. She detailed the Riyadh Metro, a $22.5 billion investment encompassing 176 kilometers, six lines, and 84 stations, providing extensive geographic coverage, with a depth of 9.8 km per 100 sq. km. This strategic development generates significant TOD opportunities, with properties in proximity potentially commanding a 20-30 percent premium. JLL emphasized the importance of implementing climate-responsive last-mile solutions to enhance mobility and accessibility, particularly given Riyadh’s extreme temperatures.
Gaurav Mathur, Head of Data Centers at JLL, emphasized the rapid expansion of the Kingdom’s AI infrastructure, signaling a critical area for technological investment and innovation.
Focusing on the construction sector, Maroun Deeb, Head of Projects and Development Services, KSA at JLL, explained that the industry is actively navigating complexities such as skilled labor availability, material costs, and supply chain dynamics.
He highlighted the adoption of Building Information Modeling as a key driver for enhancing operational efficiency and project delivery.
