Five more IPOs approved by Saudi regulator

• Two real estate companies on offer
• Gym operator sells 30% stake
• Education provider floating on Nomu

Five more companies have received approval to sell shares in initial public offerings from Saudi Arabia’s Capital Markets Authority regulator.

Already this year three Saudi companies, Derayah Financial, Umm Al Qura and Arab Company for Agricultural and Industrial Investment (Entaj), have raised more than $1 billion in IPOs. 

Shares in both Derayah Financial and Entaj rose by the maximum 30 percent allowed on their first day of trading.

In 2024, Saudi companies raised a total of $4 billion in IPOs.

At the start of this year, the Capital Markets Authority (CMA) announced that 55 companies were undergoing review for IPO approval on the Saudi Exchange’s main market, around a fifth of which were real estate companies.

Of the five IPOs receiving the green light this week, Dar Al Majed Real Estate Company won approval to offer 30 percent of its shares, while Hamad Mohammed Bin Saedan Real Estate Company was given permission to offer 15 percent of its shares to the public, an announcement on the Saudi Exchange said.

Shares of Dar Al Majed Real Estate Company will list in the Saudi Exchange’s main market, while Hamad Mohammed bin Saedan will list on the parallel market, or Nomu, which has less stringent requirements for IPOs.

• Marketing Home Group wins Saudi IPO regulatory approval

• Strong post-IPO performance bodes well for Saudi flotations

• Saudi Arabia’s Riyad Capital explores $2.5bn IPO 

The CMA also gave approval for Dome International Investment Company, an Islamic education provider, to float 14.5 percent of its shares on the parallel market.

Of the remaining companies that were given approval, the National Signage Industrial Company, a subsidiary of Arabian Contracting Services that specialises in road signs, billboards, and architectural signage, can now float 20 percent of its shares on the parallel market.

Finally, Sport Clubs Company, which operates 56 gyms across Saudi Arabia, was approved to list 30 percent of its shares on the main market.

IPO approval is valid for six months. A prospectus for each IPO will be released “within sufficient time prior to the start of the subscription period”, the Saudi CMA said.

The construction supplies company Home Marketing Group received approval earlier this week to list on the main market.

Trading of shares in the real estate company Umm Al Qura will start on Monday, concluding a $523 million IPO for 9 percent of its shares.