Saudi IPO subscriptions plunge 53pc in Q1
Riyadh, June 20, 2013
The subscriptions to initial public offerings (IPOs) in the Saudi stock market plunged 53 per cent in the first six months to SR1.2 billion ($319 million) from SR2.5 billion during the same period last year, said a report.
This was mainly due to a drop in the lower capitalization of the companies that launched IPOs this year compared to the companies launched last year, reported the Arab News.
According to experts, only Saudi citizens are allowed to subscribe for IPOs. Small Saudi investors in the share market prefer to subscribe to IPOs because of the price fluctuations of the initial day.
However, the trend is likely to change because of a decision of the Capital Market Authority (CMA) to limit the fluctuation of share value on the first day to 10 per cent.
However, experts feel the decision is likely to dampen the demand for IPOs in the future.
No new company has launched an IPO after the latest CMA decision, the report stated.
The stock market grew at the rate of 8 per cent since the beginning of the year till June 16 to reach 7,330 points gaining 529 pints compared to the end of last year when it registered 6,801 points, the study said.
More Finance & Capital Market Stories
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch
- Qatar sets up mixed business incubator
- Kuwait budget spending up 8pc in April-Jan
- Thomson Reuters to host Mena IFR awards
- ADIB offers smartphone industry investment
- Gulf Finance House to start $3bn Tunisia project
- KFH completes ICT project upgrade
- Egypt urban annual inflation slows to 9.8pc
- BIBF signs deal with Palestinian institute
- Bahrain’s GDP set to expand 12pc
- KFH-Bahrain rebrands priority banking
- Bank Nizwa wins top Islamic bank award