CMA says 2021 IPOs aim to deepen market, offer more opportunities to investors

Logo of the Capital Market Authority (CMA)

Saudi Arabia’s Capital Market Authority (CMA) stated that the number of initial public offerings (IPOs) increased to eight at a total value of more than SAR 68 billion in the fourth quarter of 2021, compared with only one in the same period a year earlier. Accordingly, the total number of offerings amounted to 20 in 2021, soaring 300% year-on-year (YoY).
 

In a statement to Argaam, the CMA added that this aims to deepen the stock market, as the regulator recognizes the importance of the capital market and accordingly seeks to boost the corporate growth and sustainability.
 

This would help create economic entities that are able to boost the national economy and offer more opportunities to investors, the market regulator noted.
 

It added that the number of companies listed in the main market rose to 210 until Q4 2021, and the number of Nomu-listed firms increased to 14.
 

Further, the number of companies that were approved to offer or list their shares in Tadawul during the fourth quarter jumped 467% YoY to 17 and 143% quarter-on-quarter (QoQ).
 

The parallel market constituted 59% of the total approvals, while the main market accounted for the remaining 41%.
 

In addition, the fourth quarter witnessed a rise in the number of individual investors in the Saudi stock market to nearly 5.9 million, an increase of more than 115,000 compared to the previous quarter.