Saudi stock exchange eyes up to $1bn in IPO

Saudi stock exchange eyes up to $1bn in IPO

Bloomberg / Riyadh

Saudi Arabia is keeping the home fires burning for regional public offerings, readying what could be the biggest sale of shares by a stock-exchange operator since Euronext NV.

Saudi Tadawul Group Holding is seeking to raise as much as $1bn after setting the price range for an initial public offering at 95 riyals ($25.32) to 105 riyals per share, the company said in a statement on Sunday. The Riyadh-based bourse, on which oil giant Saudi Aramco trades, plans to sell a 30% stake, or 36mn shares.

The offering comes amid a global IPO boom, with companies around the world raising a record of more than $600bn this year. Against that backdrop, Saudi Arabia has been among the leaders in the Middle East, listing private and family-owned concerns as well as companies such as ACWA Power International, backed by the kingdom’s wealth fund, and Saudi Telecom Co’s Internet-services unit.

Neighbouring Abu Dhabi and Dubai have been stepping up efforts as well.

“This will surely keep investors on Tadawul excited,” said Junaid Farooq, a fund manager at Frontier Investment Management Partners Ltd in Dubai. “Government policy is highly supportive of private businesses listing on the exchange and there are over