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IPOs in Kingdom of Saudi Arabia

IPOs in Kingdom of Saudi Arabia

12 December 2023

Capital markets are rapidly transforming under Saudi Arabia’s Vision 2030 program (“the Program”). The Program provides a strategic plan to diversify the Saudi economy, reducing its dependence on oil and related products. At the same time, it aims to strengthen further the role of the Saudi Stock Exchange as the Middle East and North Africa (“MENA”) region financial hub. Companies can access capital markets in various ways, e.g., Initial Public Offering (“IPO”), direct listing, reverse merger, spinoff, or use of special-purpose vehicles. The purpose of this publication is to provide a guide about the following matters:

The regulatory framework that governs the IPO process in the Kingdom of Saudi Arabia (“KSA”), including the roles and responsibilities of the Capital Market Authority (“CMA”), the Saudi Stock Exchange, and other relevant entities.
The current trends and developments in the IPO market in KSA include the increasing number and size of IPOs and the diversification of industries accessing the capital markets.
The listing options and criteria for companies that want to go public in KSA, including the main market (Tadawul) and the parallel market (Nomu), which cater to different types and sizes of companies.
The different phases of IPO, from the initial readiness assessment to the post-listing obligations and requirements.

Given the volume of recent listings on the Saudi Stock Exchange and our conversations with companies about their interest in listing in KSA, the purpose of this publication is to offer our experience and insights to companies that aspire to list on the Saudi Stock Exchange through the Initial Public Offering (“IPO”) method, enabling them to achieve their listing goal with poise and confidence.