By: Dr.Abdullah Al Sultan
By Q2-2024, 20 companies have been delisted from the Saudi Stock Exchange “Tadawul,” including Hail Cement Company. On June 12, 2024, “Tadawul” announced Hail Cement’s delisting. This followed the approval by Hail Cement’s extraordinary general assembly of Qassim Cement Company’s offer to acquire all its shares.
First Delisted Company:
According to follow-up, the first company to be delisted from the Saudi Stock Exchange “Tadawul” was Hail Agricultural Development Company (HADCO). Additionally, the company was delisted on October 14, 2009, after Almarai acquired 100% of its shares.
Delisting of Integrated Telecom Company:
The second company to be delisted was Integrated Telecom, following a royal decree in May 2013 to liquidate the Saudi Integrated Telecom Company. A committee formed by the Ministry of Commerce and Industry, the Capital Market Authority, and the Communications and Information Technology Commission handled the liquidation process.
Moreover, in April 2014, a royal decree was issued to compensate non-founding shareholders of the Saudi Integrated Telecom Company with an amount of 30 SAR per share.
Al-Mojil Group:
Al-Mojil Group was delisted from the Saudi Stock Exchange in May 2017. This makes it the third company to face this action. The Capital Market Authority (CMA) urged boards and shareholders of companies with losses exceeding 50% of their capital to rectify their situations before the grace period for implementing Article 150 of the Companies Law ended. Furthermore, Al-Mojil Group failed to take the required regulatory actions, leading to its delisting.
Companies Delisted for Similar Reasons:
Additionally, companies such as Sanad Insurance, Wafa Insurance, and Bisha were also delisted in May 2017 for the same reasons as Al-Mojil Group.
They were delisted becuse their regulatory positions were not corrected in accordance with the Capital Market Law and its regulations and the Companies Law.
Other Companies Delisted Due to Mergers:
Moreover, there are eight other companies that were delisted from Saudi Stock Exchange due to mergers with other companies:
– Al-Sahara Company: Delisted in May 2019 after being acquired by Sipchem.
– The First Bank: Delisted in June 2019 following its acquisition by SABB.
– MetLife AIG ANB Cooperative Insurance: Delisted in February 2020 after being acquired by Walaa Insurance.
– Al-Ahlia Insurance: Delisted in December 2020 after merging with Gulf Union.
– Solidarity Saudi Takaful: Delisted in January 2021 after merging with Aljazira Takaful.
– Samba Financial Group: Delisted in April 2021 after merging with the National Commercial Bank (NCB).
– Al-Ahli Takaful: Delisted in January 2022 after merging with Al-Dar Al-Arabi Insurance.
– SABB Takaful: Delisted also in October 2022 after merging with Walaa Insurance.
Other Delisted Companies from Saudi Stock Exchange
-Wafa Insurance was delisted in May 2022. The Riyadh Commercial Court of Appeals supported terminating its financial reorganization and starting liquidation under the Bankruptcy Law.
– Al-Khodari: Delisted in November 2021 after a ruling from the Riyadh Commercial Court of Appeals supported the decision to terminate the financial reorganization procedure and initiate liquidation under the Bankruptcy Law.
– Dur Hospitality: Delisted on April 12, 2023, after merging with Tibbiyah Investment.
This diverse list of delisted companies shows the various reasons for removal from the stock market, such as mergers, acquisitions, and non-compliance with financial laws. Consequently, these measures ensure the market’s integrity and transparency, ultimately protecting investors’ rights.
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