Saudi Arabia is experiencing a surge in IPO activity, with the final offerings of 2024 attracting significant retail investor interest. The Saudi Stock Exchange (Tadawul) has recorded robust demand for its two concluding IPOs of the year, generating a combined SAR 2.31 billion ($610 million) in retail subscriptions.
Almoosa Health IPO Draws Strong Retail Interest
Healthcare operator Almoosa Health saw substantial retail investor engagement, with its SAR 1.69 billion IPO attracting SAR 1.4 billion in retail demand. This figure, reported by IFR, indicates the 20% retail offer was oversubscribed by nearly 4.1 times, with 395,986 investors participating.
The IPO, open between December 23–24, priced its shares at the upper end of the SAR 123–127 range after drawing an impressive SAR 173 billion in institutional demand. Most of this institutional demand came from local entities, showcasing strong domestic confidence in the offering.
IPO: Nice One Beauty Becomes First Tech Unicorn on Tadawul
Running concurrently, the Nice One Beauty Digital Marketing Company IPO also witnessed significant traction. The online cosmetics retailer’s SAR 1.21 billion IPO saw its 10% retail offering oversubscribed 7.5 times, receiving SAR 908 million in demand from 418,116 investors.
Shares were priced at the top of the range at SAR 35, giving the company a valuation of over SAR 4 billion and making it the first tech unicorn to list on Tadawul. The retail offer was open between December 24–25.
Busy 2025 Pipeline Ahead
Looking forward, Tadawul’s IPO pipeline for 2025 is set to remain active. The Capital Market Authority (CMA) has already approved listings for several companies, including:
- United Cartons Industries
- Arabian Company for Agriculture and Industrial Investment
- Umm Al Qura for Development and Construction Company
Umm Al Qura, backed by the Public Investment Fund (PIF), received approval on December 23 to list a 9.1% stake, involving the sale of 130.8 million shares. The company is heavily involved in the Masar Destination project in Mecca, aiming to enhance the city’s capacity to host up to 30 million pilgrims annually by 2030.
The CMA approvals remain valid for six months, meaning these listings must occur in the first half of 2025. Additionally, a potential IPO by the country’s budget airline Flynas is expected early in the year, pending CMA approval.
Statements Highlight Confidence in the Market
These developments underline Saudi Arabia’s growing appeal as an investment hub. Speaking on the thriving IPO environment, industry insiders highlight the rising interest of both local institutions and retail investors.
