Saudi Arabia: Tadawul to Launch Its Own IPO After 2021

Saudi Arabia: Tadawul to Launch Its Own IPO After 2021

Khalid Abdullah Al-Hussan, CEO and board member of Tadawul, confirmed the long-awaited share sale will take place after 2021, depending on the progress of initial preparations.

Speaking at a webinar organized by Bloomberg, Al-Hussan said 2020 had been "an exceptional year,“ but he believed "the market reacted proactively“ to the impact of the coronavirus (COVID-19) pandemic.

As an example of the bourse's resilience, he pointed to the fact that Tadawul, which was established in 2007 and is 100 percent owned by the Public Investment Fund (PIF), in August launched the Kingdom's first exchange-traded derivatives market and clearing house, part of its strategy to make its equity markets more attractive to foreign investors.

Using Nasdaq technology, the Saudi Futures 30 (SF30) Index Futures Contract is based on the MSCI Tadawul 30 (MT30), the first exchange-traded derivatives product.

This is a significant step in introducing sophisticated market products and creating a trading environment that is attractive to local as well as international investors, Al-Hussan said.

"We are ambitious to continue, despite the crisis,“ he said.

As well as his company's own listing, he expressed hope that 2021 will be an important year for IPOs in the Kingdom.

"Very soon we will have it. I see this coming,“ he said.

Speaking