Saudi Arabia has experienced a sharp increase in the number of firms that look for IPO in the kingdom, said Mohammed bin Abdullah Elkuwaiz, the head of the Capital Market Authority (CMA). According to him, the Saudi stock market, Tadawul, is currently reviewing 15 applications for public listings. Tadawul saw 5 IPOs in 2019, including that of Saudi Aramco, its largest IPO ever in history. Since the start of 2020, Tadawul has seen eight new listings, despite the coronavirus pandemic.
Aramco’s IPO has encouraged other companies to make their first listings in Saudi Arabia, which will help the kingdom’s efforts to diversify its economy. Tadawul opened foreign investors in 2015 and has been conducting reforms to attract more of them. Last month, Saudi Telecom Co (STC) reportedly hired advisers for a potential IPO of its product and services development subsidiary, Solutions by STC.
