27/04/2014 14:59 AST
Saudi Arabian companies are increasing looking to raise funds via the Tadawul (Saudi Stock Exchange), creating a strong pipeline of upcoming IPOs, according to senior executives set to participate in the 9th Euromoney Saudi Arabia Conference.
Tadawul currently trades 161 companies, and in 2013 posted 28.97 million trades for a total value of SR1.37 trillion, according to Tadawul’s 2013 annual report.
Equity valuations have improved in 2014, which – combined with rising investor demand – has the potential to encourage more companies to consider listing.
Richard Banks, Regional Director, Euromoney Conferences, said: “We’re seeing positive conditions on both sides of the equation, as Tadawul continues to enhance its regulatory processes and the Kingdom’s companies look to raise funds, raising the market’s global financial standing and accelerating the pace of share sales.”
“The Euromoney Saudi Conference will be the ideal platform for retail and institutional investors to learn more about Tadawul’s future from the people who are developing its vision and strategy,” he added.
Senior executives from Tadawul, Manafea Holding Company, Saudi Aramco, Amundi Asset Management, and HSBC Saudi Arabia will discuss the dynamics between the development of the stock market and the needs of Saudi Arabia’s businesses at a special session on “Growing Capital Markets” on 7 May at the Euromoney Saudi Conference.
Tadawul’s strongest growth sectors in 2013 were domestic mid-cap, including retail (55.9%), real estate (42.4%), food and agriculture (39.5%), and construction (24.2%). Long-term, the large cap sectors like petrochemicals, telecom, and banking have higher upside.
In a recent report, Al Rajhi Capital noted that Tadawul is “ready for foreign investors,” thanks to a strong economy, robust banking system, institutions to manage foreign investment in equity markets, and a track record for managing banking liquidity.
The 9th Euromoney Saudi Arabia Conference is the longest-running, largest and most influential financial conference in the Kingdom. It will take place at the Al Faisaliah Hotel in Riyadh on 6-7 May 2014, and is expected to attract around 1,200 delegates from all over the region and the world.
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