Saudi Arabia’s bourse Tadawul said that it could go public within two years and that it would unveil timeline for an Initial Public Offering (IPO) this year.
A timeline for an initial public offering (IPO) will be provided this year, Tadawul CEO Khalid Alhussan reportedly told the Future Investment Initiative conference, adding that the listing could take place within a two-year timeframe.
The bourse entrusted HSBC in 2016 to manage an IPO, initially planned for 2018 but it was put on hold due to oil giant Saudi Aramco’s record $29.4 billion listing at the end of 2019, Zawya notes.
“Our commitment for listing continues the same. What we have delayed is just the time because Vision 2030 came in place, transformational commitment came into place,” Alhussan said, referring to Saudi Crown Prince Mohammed bin Salman’s plan to diversify the economy and wean it off crude revenues.
Alhussan also indicated that the total number of IPOs this year could outnumber the 22 registered last year.
2020 according to Alhussan was a good test for the Saudi market when, despite COVID-19, liquidity tripled, marked by a 26% increase in the number of qualified foreign investors opening portfolios, and more than 100,000 local investors joined the stock market.
