Saudi Exchange CEO: Robust IPO Pipeline, New Initiatives Attracting International Investors
The CEO of the Saudi Exchange, Mohammed Al-Rumaih, announced that the exchange is set to receive a variety of strong and diverse initial public offerings (IPOs).
This is due to new initiatives aimed at attracting international investors.
Al-Rumaih expressed confidence in the future growth of the exchange and mentioned a healthy pipeline of IPOs across different sectors and sizes.
He attributed this to the exchange's efforts to accommodate the needs of international investors through major projects and initiatives over the past few years.
In 2022, the Saudi Exchange introduced market making and the debut of Single Stock Options.
To enhance liquidity and improve price determination efficiency, they launched a market-making framework for their stock and derivatives markets.
The CEO, Al-Rumaih, also announced the upcoming launch of the second phase of the exchange's post-trade development program in Q3 2024.
He emphasized their close collaboration with the Kingdom's Capital Market Authority, stating that while they have advanced technology, regulations are also crucial, and they have been working closely with the CMA to develop the capital market.
The CEO of Saudi Arabia's Tadawul Exchange, Mohamed Al-Rumaih, and Loai Bafaqeeh, head of securities at SNB Capital, discussed the importance of Hong Kong as a partner for the Saudi Exchange.
Al-Rumaih expressed his belief in Hong Kong's role as a destination for international investors in Asia and a bridge between the Middle East and Asia.
Bafaqeeh added that Saudi Arabia is taking steps to encourage international investors by focusing on listing companies and addressing their key concerns.
During a panel discussion, the importance of Market Making in obtaining ETFs or ensuring market liquidity was emphasized.
Saudi Arabia was identified as an emerging investment prospect due to its efforts to promote itself globally and the need for education sessions to make it more appealing to regional investors.
The Saudi Arabia Capital Market Forum was held in Hong Kong to strengthen ties between Saudi Arabia and China's capital markets.
In 2023, the Saudi Exchange experienced a large number of IPOs and listings, with nine IPOs raising $3 billion on the Main Market and nine further offerings adding $5.04 billion.
The Nomu Parallel Market saw 27 IPO listings and six direct listings, totaling $1.2 billion.
The Saudi Exchange reached a milestone of 400 listings in April, highlighting its growing significance in the capital market.
CSOP plans to conduct around 2,000 seminars annually to educate clients about Saudi opportunities.
The Tadawul exchange had 216 securities listed on its main index as of March 27.
Additionally, the parallel market Nomu featured 83 listings.