Interview: As Saudi IPO action picks up, COVID-resilient sectors have an advantage – HSBC

Interview: As Saudi IPO action picks up, COVID-resilient sectors have an advantage – HSBC

Saudi Arabia is emerging from the economic slowdown caused by the COVID-19 pandemic and a protracted period of lower oil prices that badly hurt the energy exporter. Economic activity is now picking up, and businesses are looking to ramp up investments through equity and debt issuances. The stock market is booming, and the infrastructure development juggernaut is well on its way towards achieving the kingdom's Vision 2030. HSBC Saudi Arabia CEO Rajiv Shukla and Deputy CEO Faris Alghannam spoke to Zawya about how the bank is preparing to ride the wave. Saudi Arabia's initial public offering (IPO) scene is recovering to near pre-COVID levels on the back of strong liquidity in the markets. The Capital Market Authority has indicated that there are over 30 IPOs in the pipeline for both the main and secondary stock markets. Alghannam said certain sectors were better positioned to take advantage of this wave and go public. "While there is appetite in most sectors, some sectors will likely attract more attention due to their resilience during the COVID-19 pandemic [and] hence will benefit more from the expected momentum in equity capital market." He added that these sectors include the technology sector, food sectors and some