From IPO boom to standoff: Saudi Arabia’s capital markets ambitions meet a reluctant investor base
Source: Fortune ·
Saudi Arabia’s IPO market is struggling to sustain the momentum of recent years, as weak post-listing performance, valuation gaps, and geopolitical uncertainty are prompting regulators to rethink how IPOs come to market
From the source
Saudi Arabia’s IPO market is currently grappling with its weakest performance in years. Just three companies—Dar Al Balad, Saleh Abdulaziz Al Rashed, and MSGA—have listed across Saudi Arabia’s Tadawul and its smaller parallel market Nomu so far this year, raising a combined $144 million. In comparison, Saudi companies raised $3.7 billion through share sales last year—more than across the rest of the Gulf combined. Some $9.8 billion was raised across the 17 companies that listed in 2022. The $144 million raised so far this year represents just 4% of the $3.53 billion raised through IPOs during the same eight-month period in 2025, when 25 companies went public, according to the Saudi Exchange 2025 Annual Report. The reluctance to issue has, in large part, been driven by a pricing standoff between company owners and investors. Owners are reluctant to list at valuations the market is prepared to accept, while investors are unwilling to pay higher prices after a year of losses on most new…