Arab News, Thursday, Dec 23, 2021 | Jumada Al-Uola 17, 1443
Saudi market regulator approves 70.3 million shares as this year's IPO tsunami continues
Saudi Arabia:
Saudi Arabia is still seeing a tsunami of initial public offerings with
yesterday's latest round of approvals for companies to sell shares to the
public.
The Capital Market Authority approved on Wednesday
the offering of 70.3
million shares, the market regulator revealed. The approvals were led
by Public Investment Fund's fully owned Elm Co. that got the OK to sell 24
million shares, representing 30 percent of its share capital, in an
initial public offering.
All approvals by the market regulator are valid
for six months from the date of its board's decision and will be canceled if the
offerings and listings are not completed within this period, it said.
The Saudi stock market is now larger than the
Kingdom's entire economy — even without taking Aramco into consideration, the
Capital Market Authority (CMA) chairman Mohammed El-Kuwaiz said in November,
when he revealed there are a further 54 listing applications pending — 31 of
which are direct listings — as he highlighted the strength of the Tadawul. With
Aramco added, Tadawul's size is four times that of the economy, El-Kuwaiz said.
AMAK shares
The Capital Market Authority accepted Al Masane Al
Kobra Mining Co.’s request for the offering of 19.8
million shares representing 30 percent of the company’s share capital.
Al Dawaa listing
The authority also approve the request of Al Dawaa
Medical Services Co. for an offering of 25.5
million shares, which represents 30 percent of the company’s share
capital.
The company’s prospectus will be publishing prior
to the beginning of the subscription period.
Private placement
Raoom Trading Company also got approval for an
offering of one
million shares, representing 20 percent of the company’s share capital
in the parallel market, Nomu.
Direct listing
The authority approved AME Company for Medical
Supplies’ application for the registration of its shares for direct listing in
the parallel market.
Capital reduction
The CMA approved Etihad Atheeb Telecommunication
Co.’s request to cut its capital, a statement on the authority’s website said.
The company, also known as GO, is a fixed-line
operator in the Kingdom and provides voice and broadband services.
This will reduce the company’s capital to SR90
million ($24 million) from SR228.5 million.
The number of shares will go down to about 9
million, from 22.8 million.
The CMA said that this move is conditional on an
approval from the company’s extraordinary general assembly, and the completion
of related procedures and regulations.