RIYADH: Saudi Tadawul Group, the holding company behind the Kingdom’s stock exchange, on Wednesday announced it has appointed NCB Capital, JP Morgan, and Citigroup as financial advisors and global coordinators for its initial public offering (IPO) planned for later this year.
“The IPO will provide an important strategic dimension to realize the group’s expansion plans, strengthen its position globally, and align its growth objectives with the Public Investment Fund’s strategy to boost the economic transformation of Ƶ,” the Saudi Tadawul Group said in a press statement.
Earlier this month, the Tadawul stock exchange announced it had become a holding company under the name Saudi Tadawul Group, with four subsidiaries. The four new Saudi Tadawul Group companies are Saudi Exchange (Tadawul), Securities Clearing Center Co. (Muqassa), Securities Depository Center Co. (Edaa) and a new company, Wamid.
Sarah Al-Suhaimi, the chairperson of Saudi Tadawul Group, told a press conference that the plan to launch an IPO was previously announced in 2016.
“Tadawul was working day and night to accomplish many things that almost no other market had accomplished in such a short period,” she said.
“Now that the situation has stabilized, and after the board obtained the owner’s approval and the authority to restructure Tadawul and make it a holding group, the time has come to launch its IPO.”
Details about the structure and size of the IPO, and whether it will be open to foreign investors, will be announced after the company appoints a financial adviser, discusses the details with the owner, and obtains approvals from the financial market, officials said in early April.
