40 IPOs are under review, says Tadawul CEO

• Sharp increase in Saudi Exchange listings
• 80-100 companies preparing for IPOs
• 14 have floated on main market this year

The CEO of the Saudi Exchange has said that it has a “very vibrant” pipeline of initial public offerings next year, as the exchange seeks to increase the number of listings and deepen foreign investor capital to become a regional destination for IPOs.

Mohammed Alrumaih said on Monday that the exchange aims to “be the centre for IPOs within the region, probably globally for certain sectors”.

Alrumaih told the audience at FII Priority Asia in Tokyo that the exchange has recorded a sharp increase in the number of IPOs, and he expects this to continue into next year.

“We used to have only five,” he said. “In a good year we would have more than 10. Now, we have listed more than 40 and we have the same number that have already applied for the regulator.”

Between 80 to 100 companies have begun preparing for an IPO by allocating a financial advisor or lead manager, he said.

Last year 15 IPOs raised a combined $4.1 billion on just the main market of the Saudi Exchange. Including the junior market, Nomu, Saudi Arabia was the seventh-largest market in the world by number of IPOs.

This year 14 companies have launched IPOs on the main market, which stand to raise more than $3.9 billion between them, making Saudi Arabia easily the largest IPO market in the GCC by number and proceeds of IPOs.

The latest main market listing, a $67 million offering by car rental company Cherry Trading, launched on Monday. As of 11am local time on Tuesday, its shares had risen 1.5 percent against its offer price.

Almasar Alshamil Education Company, which operates schools and universities, starts trading on Tuesday, concluding a $160 million offering.

Alrumaih said on Monday that Saudi Arabia is working to ease restrictions on foreign investors and foreign companies looking to engage with the exchange.

“Just recently, we got the approval from the regulator for the Saudi depository receipts, which is the preferred way for any company to cross list,” he said. 

The reforms were approved in July and allow depositary receipts to be offered in Saudi Arabia to represent shares issued and listed on foreign markets.

Only Americana Restaurants International has performed a dual listing on the Saudi Exchange to date. Its brands in the Gulf include KFC, Pizza Hut and Krispy Kreme. Americana listed simultaneously on the Saudi Exchange and Abu Dhabi Securities Exchange in 2022.

Al Rumaih said that the 80 to 100 companies looking to list are “all local”.

The Capital Markets Authority is also introducing measures to increase foreign liquidity on the exchange.

In October the market regulator called for feedback on proposals to establish simplified investment funds to enhance the asset management sector and create “more investment opportunities for all investors”.

In the same month it sought feedback on plans to lower barriers of entry to foreign investors. In late September the Tadawul main market jumped by 5 percent on news that foreign investors could take larger stakes in Saudi-listed companies.

Further reading:

• Saudis seek feedback on plan to open stock market to foreigners
• Tadawul regulator proposes rule changes to attract investors
• More developers explore IPOs despite Tadawul turbulence

Under Saudi Arabia’s financial sector development programme, part of Vision 2030, the country is aiming to increase the size of the stock market as a percentage of GDP, excluding the impact of energy giant Aramco.

The target is to reach almost 81 percent of GDP this year and 88 percent by the end of the decade. It reported 87 percent at the end of 2024.

However, the Saudi Exchange has been the region’s worst-performing bourse this year – the All-Shares Index has slid 12.7 percent since the start of 2025.

By comparison, the Dubai Financial Market General Index has risen by 13 percent.