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Saudi Arabia’s Tadawul to restructure ahead of planned IPO

Tadawul, the Saudi stock exchange, will restructure to become a holding company ahead of its initial public offering later this year.

The exchange will restructure into Saudi Tadawul Group, a parent company housing four subsidiaries: the Saudi Exchange, a stock exchange business previously known as the Saudi Stock Exchange Co.-Tadawul; the Securities Clearing Center Co., known as Muqassa; the Securities Depository Center Co., known as Edaa; and a new, dedicated applied technology solutions company, Wamid.

The move aims to increase Saudi Arabia’s “position as an attractive global investment destination and the gateway to the MENA region,” a document outlining the changes said.

Khalid Al-Hussan will become group CEO. He is currently Tadawul’s CEO. Sarah Al-Suhaimi was named chairwoman of the Saudi Tadawal Group. She is currently chairwoman of Tadawul’s board of directors.

Mohammed Al-Rumaih was named CEO of the Saudi exchange. He oversaw the development of financial instruments, major listings and marketing initiatives at Tadawul. Details on any replacement were not immediately available.

Mohammed Al-Nory was named CEO of Wamid. Details on his previous role could not be learned. Mahmood AlSedairy remains CEO of Edaa and Wael AlHazzani remains CEO of Muqassa.

“The new structure will enable us to deliver high-quality services across all of our business lines, increase our competitiveness, and align our capital market with the rapid growth of emerging markets,” Mr. Hussan said in a statement accompanying the document. “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. The transformation provides a strong platform for the Saudi Tadawul Group’s IPO.”

Tadawul is owned by the Public Investment Fund, Riyadh, which has about 1.3 trillion riyal ($346.2 billion) in assets. The stock exchange has 203 listings and a market capitalization of 9.56 trillion riyal.

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