Saudi IPO market set to pick up with slew of new offerings

Saudi IPO market set to pick up with slew of new offerings

Riyadh: Stock offerings in Saudi Arabia look set to pick up pace after slowing in the first half of the year, with two new deals for an oil driller backed by the kingdom’s sovereign wealth fund and an air cargo business being given regulatory approval. Ades Holding, the oil and gas driller backed by the Public Investment Fund, and SAL Saudi Logistics, were both granted approval to sell 30 per cent stakes to the public, the kingdom’s Capital Market Authority said Wednesday. The Ades deal could raise about $1 billion, making it one of the largest Saudi offerings of the year. Typically one of the biggest and busiest listings markets in the Gulf, Saudi Arabia has recently been more subdued after its stock market slumped last year. However, a 10 per cent rally in the Tadawul All Share Index since the start of the year coupled with a number of debuts this week have shown that investor appetite for offerings is still strong. Several other large share sales are also in the works though without a clear timeline yet, including a potential secondary offering of Saudi Aramco and a listing of its trading business. The Public Investment Fund teamed up