Saudi CMA approves listing of Al Nahdi Medical, SHL in new wave of IPOs
Saudi Arabia's Capital Market Authority, known as CMA, approved the share offering of Al Nahdi Medical Co. and Saudi Home Loans Company in a new wave of initial public offerings.
The CMA also approved the IPO of three other companies. The companies will potentially list their shares between the main index TASI and the parallel market Nomu, according to CMA statements.
All approved applications shall be valid for six months from the CMA board resolution date. If the listing is not finalized within the specified period, the approval shall be deemed invalid.
Three out of five approved IPO files on Dec. 29 are to be listed on the Kingdom’s parallel market, Nomu, starting with Arabian International Healthcare Holding Co., known as Tibbiyah, which will raise 25 percent of its capital via IPO, amounting to 5 million shares.
Fully owned by Al Faisaliah Group, Tibbiyah is a leading healthcare provider in Saudi Arabia and the region.
More in Nomu’s approved offerings pipeline are Saudi Parts Center Co. and Saudi Azm for Communication and Information Technology Co., both of which are yet to disclose their final IPO allocations.
Jeddah-based Al Nahdi Medical Co. will offer as many as 39 million shares – a 30-percent stake – in an initial public offering.
Al Nahdi Medical is a retail pharmacy that manages and operates in 145 cities and villages across the Kingdom.
Next in line, a pioneer in Islamic home financing, Saudi Home Loans Co., or SHL, plans to strike an offering of 30 million shares on the Saudi bourse – equivalent to 30 percent of the company’s total share capital.
Al Nahdi Medical and SHL have not disclosed any information on whether they will list on the main or parallel market.
The pipeline is strong for 2022 listings as the authority has reviewed more than 50 requests for IPOs this year and approved more than 35 listings till date.
“Many private Saudi companies are eager to get listed nowadays to benefit from government incentives and use public markets to finance business expansions,” Razeen Capital’s chief Mohamed Al Suwayed said to Arab News, commenting on the recent wave of IPOs.
“Investors will benefit greatly from the growing number of listed companies to maintain better investment diversification plans,” he added.