Saudi Arabia’s IPO market is experiencing its weakest period in years, with only three companies — Dar Al Balad, Saleh Abdulaziz Al Rashed and MSGA — listing on the Tadawul and its Nomu parallel market this year, raising a combined $144 million, compared with $3.7 billion raised last year and $9.8 billion in 2022. Of the 17 companies listed since 2025, only four are trading above their issue price, reflecting investors’ unwillingness to pay the valuations that company owners are seeking. The CMA, Saudi Arabia’s market regulator, has proposed reforms requiring underwriting commitments to take effect at the start of the bookbuilding process, shifting more risk to intermediaries. Morgan Stanley analysts estimate that removing the 49% foreign ownership limit — the only such cap among major Gulf markets — could attract approximately $7.4 billion into Saudi equities.
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