Saudi Equity Capital Market Maintains Strong Momentum in H1 2025
Six companies raised a combined $2.8bn through initial public offerings on the main Tadawul exchange.
Riyadh: Saudi Arabia's equity capital market maintained strong momentum in the first half of 2025, with six companies raising a combined $2.8 billion through initial public offerings on the main Tadawul exchange.
Leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion ($1.1 billion) in what marked one of the region's largest aviation listings.
The rise in IPO listings comes amid broader financial reforms in Saudi Arabia, as the Capital Market Authority introduces new frameworks -- including regulations for special purpose acquisition companies -- aimed at expanding funding avenues and enhancing private-sector participation.
The momentum underscores investors' growing appetite for sectoral diversification across aviation, healthcare, finance, and industry, while affirming Riyadh's long-term bet on privatization and public market expansion under Vision 2030.
flynas IPO drew overwhelming demand, with institutional subscriptions oversubscribed nearly 100 times, and the retail tranche covered 349.7 percent.
The offering comprised 51.3 million ordinary shares, representing 30 percent of the company's post-offering capital.
In 2024, flynas generated $2 billion (SR7.6 billion) in revenue, marking an 18.8 percent increase from the previous year, while net profit rose 8 percent to $115.6 million (SR433.5 million).
As of June 14, the airline was operating 139 routes, connecting over 70 domestic and international destinations across 30 countries, with a weekly schedule exceeding 2,000 flights.
Diversified listings this year included Umm Al-Qura for Development and Construction Co., which raised $523.1 million by selling 130.7 million shares at $4 each.
The company leads the Masar destination project, transforming the western gateway of the Holy City with hotels, residential units, retail spaces, and infrastructure.
SMC Healthcare, an Riyadh-headquartered healthcare firm, raised $500 million through its Tadawul debut.
Derayah Financial, an asset management and brokerage firm, secured $399.6 million through its offering.
United Carton Industries Co. raised $160 million by offering 12 million shares at $13.30 each, while Arabian Co. for Agricultural and Industrial Investment, also known as Entaj, raised $120 million through a February IPO.
The Saudi exchange's benchmark TASI index ended December 2024 at 12,037 points, up 3.39 percent month-on-month.
Analysts expect IPO momentum to continue in the second half of 2025, especially in energy-adjacent sectors, fintech, and transportation, as the Capital Market Authority accelerates approvals and Vision 2030-linked corporates seek broader capital access.
Leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion ($1.1 billion) in what marked one of the region's largest aviation listings.
The rise in IPO listings comes amid broader financial reforms in Saudi Arabia, as the Capital Market Authority introduces new frameworks -- including regulations for special purpose acquisition companies -- aimed at expanding funding avenues and enhancing private-sector participation.
The momentum underscores investors' growing appetite for sectoral diversification across aviation, healthcare, finance, and industry, while affirming Riyadh's long-term bet on privatization and public market expansion under Vision 2030.
flynas IPO drew overwhelming demand, with institutional subscriptions oversubscribed nearly 100 times, and the retail tranche covered 349.7 percent.
The offering comprised 51.3 million ordinary shares, representing 30 percent of the company's post-offering capital.
In 2024, flynas generated $2 billion (SR7.6 billion) in revenue, marking an 18.8 percent increase from the previous year, while net profit rose 8 percent to $115.6 million (SR433.5 million).
As of June 14, the airline was operating 139 routes, connecting over 70 domestic and international destinations across 30 countries, with a weekly schedule exceeding 2,000 flights.
Diversified listings this year included Umm Al-Qura for Development and Construction Co., which raised $523.1 million by selling 130.7 million shares at $4 each.
The company leads the Masar destination project, transforming the western gateway of the Holy City with hotels, residential units, retail spaces, and infrastructure.
SMC Healthcare, an Riyadh-headquartered healthcare firm, raised $500 million through its Tadawul debut.
Derayah Financial, an asset management and brokerage firm, secured $399.6 million through its offering.
United Carton Industries Co. raised $160 million by offering 12 million shares at $13.30 each, while Arabian Co. for Agricultural and Industrial Investment, also known as Entaj, raised $120 million through a February IPO.
The Saudi exchange's benchmark TASI index ended December 2024 at 12,037 points, up 3.39 percent month-on-month.
Analysts expect IPO momentum to continue in the second half of 2025, especially in energy-adjacent sectors, fintech, and transportation, as the Capital Market Authority accelerates approvals and Vision 2030-linked corporates seek broader capital access.
