Saudi stock market sees IPO activity returning after virus slump

Saudi stock market sees IPO activity returning after virus slump

The Saudi exchange will introduce derivatives trading next month

Saudi Arabia's stock exchange expects share sales to pick up after coming to a halt during the early stages of the coronavirus pandemic.

There are as many as 10 companies planning initial public offerings on the Tadawul, as the exchange is known, chief executive officer Khalid Al Hussan said in an interview with Bloomberg.

The stock exchange is planning to complete its own share sale within the next 24 months, he said.

"We have already listed five companies so far and there are at least nine to 10 companies to come,“ Al Hussan said. "If all the applications get listed this year it would be one of the best IPO years.“

Saudi Arabian companies are taking the lead in new offerings on the Middle East's biggest stock exchange at a time when IPOs across the region have been scarce.

Amlak International for Real Estate Finance Co. jumped by the maximum allowed on Monday and Tuesday following its debut, the first since a shutdown triggered by the coronavirus.

Grocery chain BinDawood has received regulatory approval to proceed with a sale of 20 per cent of its capital.

As a comparison, the last corporate IPO in neighbouring United Arab Emirates happened