[2007-10-29]  Saudi bourse to become joint-stock company; set to sell shares in IPO
The Tadawul stock exchange in Saudi Arabia, the largest Gulf bourse with a combined market capitalisation of almost $380bn, is set to sell its own shares via an initial public offering soon, an official said.
Tadawul will first become a joint-stock company and then sell its shares through an IPO, only the second Middle East bourse to go public after Dubai Financial market last year, said a senior official at Tadawul.
A new board for Tadawul will be appointed “any time now,” said Abdullah al- Suweilmy, general manager of Tadawul, adding that shares could be offered to the public as well as institutions.
“We expect the board to decide when the IPO will be launched and what stake the government will sell,” al- Suweilmy said. The new board will determine if foreign investors will be allowed to buy shares, he added.
The government-controlled Capital Markets Authority, which regulates the bourse, will appoint the new board.
“It is expected that representatives of brokerage firms and banks will be appointed to the new board,” said a senior officer at a brokerage firm.
The Saudi market is the worst performing Gulf market this year, after falling more than 50% last year.
Foreign investors are not allowed to buy shares on the Tadawul directly but some relaxation on this is also expected soon, market entities said.
The Dubai bourse, with a combined market capitalisation of about $112bn, sold a 20% stake worth $449mn to the public late last year. Analysts expects the Tadawul share offering to be much bigger than the Dubai sale. – Zawya Dow Jones




Source: © Gulf Times Newspaper, 2007