Saudi Arabia’s stock exchange has converted itself into a holding company and will be renamed Saudi Tadawul Group ahead of its initial public offering (IPO) this year, Group CEO Khalid al-Hussan said on Wednesday.
Saudi Tadawul Group will have four subsidiaries: Saudi Exchange, its stock exchange business unit, Securities Clearing Center Company (Muqassa), the Securities Depository Center Company (Edaa), and innovation unit Wamid.
Al-Hussan, who was chief executive at Tadawul, becomes group chief executive of Saudi Tadawul Group.
“I’m confident that the Saudi Tadawul Group and its subsidiary companies will shape what comes next in terms of capital market development in Saudi Arabia, serving as the bridge connecting global investors and regional economies,” al-Hussan said in the press release.
“The transformation provides a strong platform for the Saudi Tadawul Group’s IPO.”
Mohammed al-Rumaih becomes chief executive of the Saudi Exchange. Mohammed al-Nory has been appointed as chief of Wamid.
Reuters reported last week that the bourse invited international and local banks to pitch for roles in its highly-anticipated flotation.
Companies listed on Tadawul have a combined market capitalization of $2.5 trillion, making it the Arab world’s largest stock exchange. Saudi Aramco listed on the bourse in late 2019, raising $29.4 billlion in the world’s biggest IPO.
It has also welcomed a slew of companies since the pandemic including healthcare firm Suleiman Al Habib and Riyadh-based vehicle rental company Theeb Rent-a-Car.