Tadawul Group shares open 10% above listing price in Riyadh debut

Tadawul Group shares open 10% above listing price in Riyadh debut

Shares of Saudi Tadawul Group, the owner of the kingdom's $2.5 trillion dollar bourse, soared more than 20% on debut Wednesday as the appetite for Gulf listings heats up. "Today we mark a significant milestone for our transformation," Saudi Tadawul Group CEO Khalid Al Hussan told CNBC's Dan Murphy on Wednesday. Priced at 105 Riyals ($27.99) per share and oversubscribed by 121 times, the stock exchange operator opened at 115.4 riyals on Wednesday, 10% above the company's listing price. "Demand was significant for all types of investors — local, [regional] and international," Al Hussan said, adding that public funds, Saudi corporates and sovereign accounts from the Gulf and globally, as well as retail investors, took part in the offer. The share sale raised as much as $1 billion for the group's only shareholder, the Public Investment Fund, which is tasked with investing to diversify the Saudi economy and advancing the kingdom's Vision 2030 agenda. The Tadawul Group IPO, at least , is the second-biggest of the year after the $1.2 billion listing of utility company ACWA Power in October. The float of Saudi Telcom's internet service unit in September also drew significant investor interest, underscoring hot demand for Saudi floats.