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Foreign investment in Saudi equities rose 15.6% y-o-y in Q4 2023 to reach a new record of over SAR 400.6 bn, according to the {quarterly statistical bulletin for Q4 (pdf)} by the Capital Market Authority (CMA). The quarterly figure represents a 5.6x increase from the SAR 72.2 bn recorded in 2015 when the local exchange opened to foreign investors. Qualified foreign investors (QFIs) accounted for 80% of total foreign investment in listed Saudi equities in 2023 at SAR 320.4 bn.
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A look at offerings: The CMA approved four offerings on the main market in the fourth quarter of the year, down from seven in 4Q 2022. It also approved eight transactions on Nomu in the same period, down from 20 a year before. The bulletin showed 12 companies had filed in 4Q 2023 to sell shares or list on Tadawul’s main market, while 43 had filed for regulatory clearance on Nomu.
The current pipeline is looking robust, with the following offerings on deck for Tadawul’s main market:
- Bankers leading the Miahona IPO will issue their indicative price range release alter today;
- Fakeeh Care Group plans to sell a 21.5% stake on Tadawul’s main market;
- Electronic retailer eXtra is looking to float a 30% stake UIHC, which operates its consumer finance arm under the Tasheel brand;
- PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital;
- Hotels and resorts operator Boudl has filed to go public;
- Labor agency Smasco is in the chute;
- Fourth Milling Company will list before the end of June;
- Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
- Hypermarket operator Lulu is said to be eyeing a dual listing on Tadawul and ADX;
- Aster DM Healthcare looks set to spin-off its GCC assets and seek a dual listing on Tadawul and in the UAE.
The number of listed companies on Tadawul’s main market rose in the fourth quarter of 2023 to 231 companies, up from 223 in the same period a year earlier. The number of listed companies on parallel market Nomu stood at 79 at the end of last year, up from 46 the year before.
The number of Investment funds rose 36.6% y-o-y to a new record of 1.2k, including 291 public funds and 994 private funds. The number of subscribers in both funds grew 73.2% y-o-yin the same period to hit a record of 1.17 mn.
Real estate-led investment fund attracted the most attention among all investment funds, with REITs soaking up 66% of all private capital allocated to investment funds in the quarter and 51% of all inflows of public capital.
