Saudi Arabia’s listed companies achieved remarkable growth in 2024, with ACWA Power and Al Rajhi Bank leading the Tadawul All Share Index. ACWA Power contributed 295 points, while Al Rajhi Bank added 207 points, according to SNB Capital data.
ACWA Power, Al Rajhi Bank Showcase Strong Gains
ACWA Power’s stock surged from SR255.89 at the start of 2024 to SR401.4 by year-end, marking a significant increase. Similarly, Al Rajhi Bank’s stock rose from SR86.8 to SR94.6 during the same period. Other key contributors included Saudi Research and Media Group, Elm Co., and Ma’aden, adding 44, 43, and 40 points, respectively.
Not all companies experienced growth in 2024. Saudi Aramco faced a notable decline, losing 177 points as its stock dropped from SR140 to SR111.8. SNB Capital, SABIC, Banque Saudi Fransi, and Sipchem also recorded decreases of 70, 62, 32, and 30 points, respectively.
IPO Market Sees Robust Activity in 2024
The Kingdom’s IPO market remained vibrant, with 14 IPOs raising SR14.21 billion ($3.7 billion), a 19% year-on-year increase. Almoosa Health and Fakeeh Care Group led in size, with Fakeeh attracting 1.34 million unique investors.
Individual subscriptions accounted for 13% of total IPO volume, amounting to SR1.94 billion. Modern Mills Co. achieved the highest subscription coverage at 21.9 times, while the food production sector dominated IPO activity, contributing 26.9% of total listings.
Valuations and Future Projections
IPO valuations varied widely, with an average price-to-earnings ratio of 34 times. However, United International Holding recorded the lowest P/E, while Nice One topped the charts at 118 times. SNB Capital forecasts an 8% annual profit growth for Tadawul-listed companies in 2025, with the petrochemical sector expected to lead with a 74% profit rise.
This growth underscores Saudi Arabia’s dynamic market landscape, driven by strong performers and a thriving IPO sector.
