Shares of Rasan Information Technology (8313) and Al Taiseer Group Talco Industrial Co (4143) surged 30% and 14% respectively during their first trading sessions on the Thursday prior to Eid Al-Adha.
Successful IPOs
Rasan and Talco were traded at approximately SAR 48 and SAR 49 per share, respectively. This is higher than the prices set for their initial public offering prices, which stood at SAR 37 and SAR 43 apiece, respectively.
So What
The listing of Rasan and Talco marks the eighth new listing on Tadawul since the start of the year. This brings the total number of listed companies on the exchange to 221, excluding the 18 traded real estate funds.
The bourse saw only seven companies make their debut last year.
Some Context
MBC Group was listed on Tadawul on January 8, and Avalon Pharma on February 27. Modern Mills also made a debut on Tadawul on March 27, while Soliman Fakeeh, Miahona, and SMASCO followed suit in June.
Over the past three years, the local stock market has been the most active regionally in terms of initial public offerings in the region over the past three years.
This is part of the Kingdom’s efforts to diversify its stock exchange beyond the usual dominance of banks and industrial companies.
In spite of the governmental push, the technology sector has not seen many listings.
Now What
Aramco’s secondary offering of its shares, valued at SAW 11.2 billion, represents the “largest of its kind” globally in three years. It is expected to help finance the trillion-dollar expansion plan aimed at transforming the Saudi economy.
