Saudi stock market listings in 2023 record increases exceeding 90%

The total number of listings in the Saudi stock market this year reached 7 listings on the main market, with some of them recording increases exceeding 90% since their listing until now.

These listings began with the offering of “SAL” company at a listing price of 106 riyals per share, and the offering value amounted to 2.54 billion riyals. This was followed by the offering of the Human Resources Resources Company at a price of 64 riyals per share, with an offering value of 288 million riyals.

In the year 2023, the Jamjoom Pharmaceuticals factory went public at a listing price of 60 riyals per share, with a listing value of 1.26 billion riyals. Additionally, the Flexible Profit Company went public at a share price of 14.6 riyals, with a listing value of 313 million riyals.

Furthermore, the First Mills Company also went public at a price of 60 riyals per share, with a listing value of 999 million riyals. Lumi Leasing Company was also listed at a listing price of 66 riyals per share, with a listing value of one billion riyals.

Adis Holding Company was listed on the Saudi stock market at a share price of 13.5 riyals, with a listing value of 4.57 billion riyals.

The stocks listed for the first time in the market experienced significant increases during the year 2023, except for the “Merna” stock.

The stocks of the “Al-Mawarid” company led the increases among listed stocks in 2023, with a growth rate of 91.88%, followed by “Jamjoom Pharma” stocks with an increase of 90.3%. Next were “SAL” stocks with a growth rate of 82.45%, along with “Adis” with a rate of 79%. The only decline was recorded by “Flexible” stocks, with a decrease of 16.85%.

The number of listings in 2023 decreased to 7, compared to 17 listings in 2022. In a previous interview with “Al Arabiya Business,” the CEO of “Saudi Tadawul,” Mohammed Al-Rumaih, attributed this to companies awaiting approval for listing in the first quarter of 2023, considering global events and the impact of interest rate hikes on liquidity. After the first listing and the excellent response from individuals, companies gained confidence, liquidity increased in the market, and there was a desire for acquisitions.

Al-Rumaih confirmed that there were more than 50 requests for all markets and different types, expressing optimism about the future, the positive climate, non-oil economic growth, companies’ results, their overcoming of challenging stages, and the Saudi market being one of the best markets worldwide.

On the other hand, Abdullah Al-Hamid, the Head of Advisory at GIB Capital, agreed with the previous opinion that the beginning of 2023 was very challenging, and most analysts were pessimistic about stocks due to rising interest rates. This had an impact on the willingness of many companies to go public. However, confidence returned by mid-2023, and the market will witness the listing of “MBC” stocks as the first listing in 2024.

Al-Hamid added in an interview with “Al Arabiya Business” that the Capital Market Authority has more than 47 ready-to-list requests. Therefore, 2024 is expected to be good if it is accompanied by a reduction in interest rates.