Saudi Tadawul Group

Saudi Tadawul Group is a Saudi holding company whose formation was announced when the Saudi Stock Exchange (Tadawul) converted into a holding company under that name on 25 Sha'ban 1442 AH, corresponding to 7 April 2021, with a new structure that supports the future development of the Saudi capital market and ensures its continued evolution.[1]

The Group comprises four subsidiaries: Saudi Tadawul Group as the stock exchange, the Securities Clearing Center Company (Muqassa), the Securities Depository Center Company (Edaa), and Wamid Company, which specialises in innovative technology services and solutions.[1]

The conversion was a step in developing the Saudi capital market and strengthening its leadership among emerging markets, and the Group issued its first annual report for 2020 on 14 Dhu al-Qi'dah 1442 AH, corresponding to 24 June 2021.[1][2]

The Saudi Stock Exchange (Tadawul) announced on 25 Sha'ban 1442 AH, corresponding to 7 April 2021, its conversion into a holding company under the name Saudi Tadawul Group Holding Company, with a new structure that supports the future development of the Saudi capital market and ensures its continued evolution.[1]

The Group strengthened its innovation activities by launching Wamid Company, the new company specialising in innovative technology solutions, as a step towards the Group's readiness for the initial public offering expected during 2021.[1]

Saudi Tadawul Group issued its annual report for 2020 on 24 June 2021, including its financial and operational results.[2]

The Group's operating revenue rose by more than 91% to SAR 1.1 billion in 2020, driven mainly by a 141% increase in trading commissions.[2]

Total profit grew by 203% to SAR 723 million, annual profit before Zakat increased by 281% to SAR 584 million, and annual profit after Zakat rose by 227% to SAR 500.5 million.[2]

The Group completed the fifth and final phase of inclusion in the FTSE Russell Emerging Markets index, launched the derivatives market and the first exchange-traded gold fund in the Middle East and North Africa, and introduced futures contracts for the MT30 index and the iBoxx Tadawul indices for Sukuk and government debt instruments in Saudi riyals.[2]

On 26 Muharram 1443 AH, corresponding to 3 September 2021, the Public Investment Fund, in cooperation with Saudi Tadawul Group, announced its intention to establish the Riyadh Voluntary Exchange Platform for trading and exchanging carbon credits and offsets in the Middle East and North Africa.[3]

Saudi Tadawul Group announced the launch of single stock futures starting 4 July 2022, as the second derivatives product traded on the Saudi capital market, on the shares of ten listed companies, cleared by Muqassa, after the derivatives market was launched in 2020.[7]

On 18 Dhu al-Hijjah 1443 AH, corresponding to 17 July 2022, it launched the TASI Islamic Index, the first index compliant with the provisions of Islamic Sharia, to track the performance of Sharia-compliant companies listed on the Saudi Exchange.[8]

Saudi Tadawul Group Holding Company announced on 2 Rabi' al-Thani 1443 AH, corresponding to 7 November 2021, its intention to proceed with the initial public offering and to list its ordinary shares on the Main Market of the Saudi Exchange, after obtaining the approval of the Capital Market Authority on 3 November 2021.[4]

The offering comprised 36 million ordinary shares, representing 30% of the company's share capital of 120 million shares, through the sale of shares owned by the sole shareholder, the Public Investment Fund. The Group also holds a 33.12% stake in the share capital of Tadawul Real Estate Company.[4]

The price range for the offering shares was set between SAR 95 and SAR 105 per share, and the book-building period for the institutional tranche began on 21 November 2021 and ended on 26 November 2021.[5]

On 24 Rabi' al-Thani 1443 AH, corresponding to 29 November 2021, the company announced that the subscription period for individual investors would begin on 30 November 2021 and end on 2 December 2021, and set the final price of the offering shares at SAR 105 per share, meaning the company's market value reached SAR 12.6 billion as of the listing date.[6]

On 19 Rabi' al-Thani 1444 AH, corresponding to 13 November 2022, the Public Investment Fund completed the sale of 12,000,000 shares of its stake in Tadawul, representing 10% of the company's share capital. The offering size reached SAR 2.3 billion, the second-largest accelerated book-building ever in the Saudi market and the Gulf region, and the Fund's stake after the sale reached 72,000,000 shares, or 60% of the company's share capital.[9]

Q: What is Saudi Tadawul Group? A: It is a Saudi holding company into which the Saudi Stock Exchange (Tadawul) announced its conversion under the name Saudi Tadawul Group Holding Company on 7 April 2021.[1]

Q: How many subsidiaries does Saudi Tadawul Group have? A: Four companies: the Saudi Exchange (Tadawul) as the securities market, the Securities Clearing Center Company (Muqassa), the Securities Depository Center Company (Edaa), and Wamid Company.[1]

Q: When did Saudi Tadawul Group offer its shares for public subscription? A: After the approval of the Capital Market Authority on 3 November 2021, the intention to list was announced on 7 November 2021, the final price was set at SAR 105 per share, and the individual subscription ran from 30 November to 2 December 2021.[4][6]

Q: What was the size of Saudi Tadawul Group's initial public offering? A: 36 million ordinary shares, representing 30% of the company's share capital of 120 million shares, through the sale of shares owned by the Public Investment Fund.[4]

Q: What was Saudi Tadawul Group's market value at listing? A: It reached SAR 12.6 billion, based on the final price of SAR 105 per share.[6]

Saudi Tadawul Group continued to develop the infrastructure of the Saudi capital market by launching derivatives, indices, and specialised trading platforms, including the Riyadh Voluntary Exchange Platform for carbon credit trading, single stock futures, and the TASI Islamic Index.[3][7][8] Related topics on the platform include the Capital Market Authority, the Public Investment Fund, and Saudi Vision 2030.