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Tadawul Transparent IPO


Tadawul IPO Milestones

  1. Company Decision
  2. IPO Readiness
  3. Appoint Advisors
  4. Preparation Phase
  5. Submit IPO Application
  6. CMA Review & Decision
  7. IPO Book Building
  8. Subscription Period
  9. List on the Exchange

Description of achieved stages

1. COMPANY DECISION

In 2015, The Saudi Stock Exchange (Tadawul) announced its plans to list part of the company’s shares for initial public offering by 2018, a crucial step that aligns with the country’s national economic transformation. Tadawul is considered a dynamic economic hub catering to about 5 million investors, 80 financial firms, and 270 listed and unlisted companies.

2. IPO READINESS

The Saudi Stock Exchange (Tadawul) appointed a consultant to assess its readiness for IPO and listing. This is the initial phase in the process of transforming the company into a public entity. The IPO Readiness assessment identifies the overarching and company level issues that impact the IPO implementation and designs the necessary changes to support the IPO process. The exercise varies in duration depending on the company - typically occurring between 12 and 24 months before the offering, and covers the following:

  • Offering strategy
  • Financial statements
  • Governance
  • Controls
  • Organizational structure
  • Resources and timeline

For more information regarding IPO readiness, please click here.

3. APPOINT ADVISORS

Companies aiming to go public are required to appoint a group of advisors to manage their IPO processes and liaise with the relevant authorities on the companies behalf. The following are examples of the different type of advisors: financial advisor, legal advisor, lead manager, underwriter, book-runner, auditor and a PR/Marketing consultant.

In this respect, the Capital Market Authority (CMA) is responsible for authorizing financial advisors to manage the offering procedures and ensure that the company meets the rules and regulations issued by the CMA.

For more information on how to appoint advisors, please click here.