RIYADH: Initial public offering activity on Saudi Arabia’s primary index TASI soared 250 percent in the first quarter of 2022 from a year ago, even as the Ukraine-Russia crisis roiled markets.
In what is considered the region’s most active IPO market, the value of initial share sales reached as high as $3.4 billion from $280 million during the same period in 2021.
The IPO buzz emerged following seven record offerings by East Pipes, Elm, Scientific and Medical Equipment House, Al-Dawaa Medical Services, Al Masane Al Kobra Mining, Nahdi Medical and Saudi Home Loans.
Pharma chain operator Nahdi topped the list as it raised $1.36 billion in the Kingdom’s biggest IPO since oil giant Aramco.
PIF-owned digital security firm Elm Co. was next, with $819 million in proceeds.
In the same quarter last year, the market was relatively idle, with only two offerings of Alkhorayef Water and Power Technologies and Theeb Rent a Car, generating proceeds amounting to $144 million and $136 million, respectively.
Despite ongoing geopolitical hurdles, strong oil prices, solid market debuts, and increased investor interest spurred activity in the Kingdom’s IPO market.
Speaking at the Saudi Capital Market Forum earlier this month, the CEO of the bourse, Mohammed Al-Rumaih, said 70 more IPOs are lined up for the current year on the main and parallel markets.
Companies’ interest in selling shares to the public increased over the past few years with the introduction of the parallel market, known as Nomu, where IPO activity is as busy as the main market.
TASI targets larger companies with the ability to bear big loads in data disclosure and governance, while smaller companies prefer to list on Nomu.
Nomu has recorded seven IPOs raising $608 million collectively this year.
The series of public offerings came in line with efforts to boost liquidity in Saudi Arabia’s capital market.
