Saudi capital market regulator clears three IPOs

CGS also lists on main market

Ecommerce company lists on Nomu

Saudi Arabia’s market regulator has approved three share sales – two on the main market and one on the junior market.

Riyadh-based developer AlRamz Real Estate Company will offer 12.9 million shares, or 30 percent of its capital, on the main market.

Consolidated Grünenfelder Saady Holding (CGS), a Swiss-Saudi joint venture with headquarters in Riyadh, also plans to list 30 percent of its equity, or 30 million shares. CGS produces refrigerated vehicles and warehouses and employees 750 people across Saudi Arabia and Bahrain, according to its website.

Meanwhile, Riyadh-based distribution and ecommerce company Abdulaziz Ahmad Altwijri Trading Company received approval to list one million shares, representing 20 percent of the company’s capital, on the Nomu Parallel Market. The offer is open to qualified investors.

The approvals are valid for six months and will lapse if the listings are not completed within the timeframe.

Dozens of other companies have reportedly applied for CMA approval to list on the main market, although only two more currently have permission: real estate company Dar Al Majed and contracting supplies company Marketing Home Group.

Last week, it was reported that Ejada Systems, the technology arm of Al Rajhi Bank, would reapply to CMA for permission to list after the six-month approval it received in December expired.

Sport Clubs Company, a gym operator that is undergoing an IPO process, set its final offer price at SAR7.50 a share, according to a letter to the Saudi Exchange on Tuesday.

BSF Capital, which is underwriting and advising the process, said the institutional tranche was more than 44 time oversubscribed. The company stands to raise SAR240 million from the offering, which will be the seventh of the year.

The market regulator also scrapped two planned IPOs – Alkhaldi Logistics Company and Dome International Investment – on Nomu.

Mohammed Al-Rumaih, the Saudi Exchange CEO, has said that several Asian companies are in talks to list in Saudi Arabia, according to Reuters.

Initial public offerings on the main market of the Saudi Exchange have raised $2.8 billion already this year, following on from last year’s total of $4.1 billion.

In the wake of US tariff announcements in April and recent hostilities between Israel and Iran, four out of six IPOs started and completed this year were trading below their initial offer price as of Tuesday.