Saudi Arabia’s Tadawul ready for IPO, but Nomu isn’t a dumb exchange – Middle East & Gulf News

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Jahez International Company, Saudi Arabia’s leading online food delivery platform, recently celebrated the listing of its shares and the start of trading on the Saudi Stock Exchange’s Nomu parallel market, following its successful IPO (IPO ).

Jahez is a local Saudi company that uses disruptive technology to connect more than 1.3 million active users to its platform network which includes more than 12,000 merchant branches and more than 34,000 delivery partners in 47 cities. Saudi Arabia as of March 31, 2021.

Prince Mishal bin Sultan bin Abdulaziz Al Saud, Chairman of the Board of Jahez, said: “This achievement is one of the benefits of collaboration between the public and private sectors. Being the first Saudi tech start-up to feature on Nomu represents the next step in the growth journey for Jahez and the industry in general. “

The offer consisted of 1,888,523 shares representing 18% of the group’s share capital after the offer, in addition to the allocation of 204,590 over-allotted shares to institutional investors qualified to implement the price stabilization mechanism.

Image source: Arab News

85.6% of the Offer was allocated to qualified institutional investors and 14.4% to qualified individual investors. The IPO was 38.8 times and 5.9 times oversubscribed, generating demand of $ 16.1 billion and $ 378 million, respectively. The final offering price of the offering was set at 850 Saudi Riyals ($ 229.5) per share, implying a market capitalization of $ 2.4 billion at listing.

The Group has experienced tremendous growth since the launch of the Jahez platform in 2016, with orders delivered through Jahez exceeding 68 million, with 36 million orders delivered in the first 9 months of 2021 alone, totaling $ 864 million in value. adjusted gross of goods, including VAT and delivery. costs.

Jahez’s IPO, which started last December, was Nomu’s biggest in 2021. Jahez jumped more than 10% on its stock market debut. The food company’s stock price hit $ 250 recently. Over 434,200 stocks changed hands during the session.

TASI fight

The main Saudi stock index, the TASI, ended lower on January 6 as an increase in cases of COVID-19 of the omicron strain scared investors.

Saudi Arabia’s health ministry confirmed 3,045 new cases of COVID-19 a day earlier, down from just 34 on December 1, 2021.

Image Source: Arab Affairs

Global indices also pushed the TASI and regional indices down. The Fed minutes signaled a possibility of raising interest rates earlier than expected amid a tight labor market and high inflation, Reuters reported.

TASI has been dragged down by the crashes of some of the Kingdom’s top-valued companies including Al Rajhi Bank, SABIC, oil giant Aramco, all of which traded in the red zone.

TASI edged down 0.2% to end the day at 11,431 points, while parallel market Nomu gained 1.1% to 25,618.

On Nomu, the gains went to Saudi IT firm Advance International Co., or AICTEC, which topped the winners on its first day of trading, rising 30% to $ 38.

In energy trading, Brent crude hit nearly $ 82 a barrel.

Tadawul and IPO listings

Saudi Arabia’s Tadawul Stock Exchange has received 50 applications from companies for IPOs in 2022 and is considering whether or not to allow PSPCs, or special purpose acquisition companies, to list.

Khalid al-Hussan, CEO of Tadawul, said the exchange discussed business models and assessed appetite for PSPCs in the kingdom, but added that no legal framework has yet been proposed.

“We are taking a very close look at this recent development (about PSPCs) and absolutely can’t wait to add this item to our market,” Hussan said.

“We have to make sure that this vehicle is demanded by investors as well as by issuers,” he added.

Image source: Reuters

Tadawul’s own listed shares opened to $ 30.76, nearly 10% above its listing price when it debuted in Riyadh.

The exchange, which raised around $ 1 billion through an IPO, valued its shares at $ 28.35 each.

Saudi Arabia’s stock index rose 27% in December 2021. The sale of Tadawul shares was the country’s second bid after ACWA Power International, which raised $ 1.2 billion from investors.

Hussan said about 20 to 25 percent of the 50 sales of public shares slated for the market in 2022 are expected to be on the main draw.


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