Saudi Arabia..
Saudi Stock Exchange run by Tadawul (File Photo)

The shares of the Saudi “Tadawul” company, the operator of the local stock exchange, jumped, on Wednesday, by more than 10 percent on its first trading day in the stock market.

And the company’s share, owned by the Saudi sovereign fund, recorded at the beginning of trading, increases between 10 and 21.5 percent.

According to market data, the subscription price for the company’s share was 105 riyals ($28), while the lowest level was recorded during the session at 115.4 riyals ($30.8), and the highest level was 127.6 riyals ($34).

Today, Wednesday is the first for the company to be listed on the local stock exchange, and it trades within the daily price fluctuation limits of 30%, up or down.

This limit is applied only during the first three days of listing, and as of the fourth trading day, the daily price fluctuation limits will be reset to 10 percent, down or up in one session.

The company offered 36 million shares, representing 30 percent of its capital, noting that 70 percent of the offered shares were offered to institutional investors covered 121 times, and 30 percent were offered to individuals with a coverage of 4.4 times.

The proceeds of the subscription (at the offer price of 105 riyals, equivalent to 28 dollars per share) amounted to 3.78 billion riyals (1.01 billion dollars).

Tadawul was established in 2007, with a capital of 1.2 billion riyals ($320 million), divided into 120 million shares wholly owned by the Saudi Sovereign Fund (Public Investment Fund).

“Tadawul” includes four subsidiaries, namely, the Saudi Tadawul (as a stock market), a clearing center for securities company (clearing), the Securities Depository Center Company (Edaa), and the new Wamd Company, which specializes in services and technology solutions based on innovation.

Prior to “Tadawul”, the current year witnessed seven listings for companies: the Arab Company for Internet and Communications Services, Al-Khorayef Water and Energy Technology, Theeb Rent a Car, Food Development Company, ACWA Power Company, Al-Arabiya Technical Contracting Company, Al-Nayifat Finance Company.

© The Eastern Herald