The Saudi Stock Exchange (Tadawul) concluded 2024 with two significant IPOs, raising a combined SAR 2.31 billion ($610 million) from retail investors, IFR reported.
Almoosa Health
Saudi hospital operator Almoosa Health secured nearly SAR 1.4 billion in retail demand from 395,986 investors for its SAR 1.69 billion IPO, achieving a subscription rate of 4.1 times for its 20% retail offer. The retail subscription period ran from December 23–24, following institutional pricing at the top of the SAR 123–SAR 127 range, driven by SAR 173 billion in demand from 1,412 local institutional accounts and SAR 5.5 billion from 39 international institutions.
The IPO raised funds through the issuance of 9.3 million new shares and a secondary sale of 4 million shares. Cornerstone investors, including Tawuniya and Alfozan Holding Company, took up 22% of the offer. Refunds of excess subscriptions are due by January 2, while the trading date remains pending.
Nice One
Online cosmetics retailer Nice One Beauty Digital Marketing Company closed its retail offering on December 25, attracting SAR 908 million in demand from 418,116 investors, leaving the tranche 7.5 times covered. Shares were priced at the top of the SAR 35 range, valuing the company at over SAR 4 billion and marking the first tech unicorn to debut on Tadawul.
Cornerstone investors, including Masarrah Investment Company, Mohammed Abdulaziz Al Habib & Sons, and Frontier Investment Management Partners, covered 12.5% of the IPO.
Busy pipeline for 2025
Tadawul is preparing for a robust IPO pipeline in 2025, with approvals already granted by the Capital Market Authority (CMA) for listings by United Cartons Industries, Arabian Company for Agriculture and Industrial Investment, and Umm Al Qura for Development and Construction Company.
Umm Al Qura, backed by the Public Investment Fund, plans to list 130.8 million shares (9.1% stake) as part of its involvement in the Masar Destination project in Mecca. This initiative aims to expand the city’s capacity to host 30 million pilgrims annually by 2030. Approvals for these listings are valid for six months, requiring launches within H1 2025.
An IPO for airline Flynas is also anticipated early in 2025, with BSF Capital, Goldman Sachs, and Morgan Stanley managing the deal. However, CMA approval is still pending.
