Saudi Arabia’s initial public offering (IPO) market is experiencing a significant surge, drawing substantial retail investor interest. The final two major IPOs of 2024 on Tadawul attracted a combined SAR 2.31 billion ($610 million) from retail investors, the International Financing Review (IFR) reported.
Almoosa Health’s Successful IPO
Almoosa Health, a prominent Saudi hospital operator, launched an IPO with a 20% retail offer. This offer attracted SAR 1.4 billion from 395,986 investors, achieving nearly 4.1 times subscription. The company priced the shares at the top of the SAR 123-127 range after receiving SAR 173 billion in institutional demand, primarily from local institutions.
Nice One Beauty’s Impressive Debut
Concurrently, Nice One Beauty Digital Marketing Company, an online cosmetics retailer, conducted a SAR 1.21 billion IPO. Its 10% retail offer garnered SAR 908 million from 418,116 investors, achieving 7.5 times coverage. The company offered shares at SAR 35, valuing itself at over SAR 4 billion and marking its debut as Tadawul’s first tech unicorn.
Anticipated IPOs in 2025
Looking ahead, Tadawul‘s IPO pipeline for 2025 is expected to be robust, with several approvals already in place.
The Capital Market Authority has approved listings for United Cartons Industries and Arabian Company for Agriculture and Industrial Investment.
Additionally, Umm Al Qura for Development and Construction Company has received approval for its highly anticipated IPO listing. Umm Al Qura, backed by the Public Investment Fund, plans to list a 9.1% stake in the market. This listing involves the sale of 130.8 million shares, signaling strong interest in the company’s strategic initiatives.
The company is part of the Masar Destination project, a major development aimed at enhancing Mecca’s infrastructure. Masar Destination aims to increase Mecca’s capacity to host up to 30 million pilgrims annually by the year 2030.
These IPO approvals are valid for six months, suggesting these deals will likely occur in the first half of 2025.
