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Tue 1 Sep 2020 10:18 AM

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Saudi bourse's IPO pipeline 'very healthy' despite pandemic, says CEO

Khalid Abdullah Al Hussan also says stock exchange IPO will be assessed early next year

Saudi bourse's IPO pipeline 'very healthy' despite pandemic, says CEO

Khalid Abdullah Al Hussan, chief executive officer of Tadawul.

The pipeline for initial public offerings (IPOs) on Saudi Arabia’s stock exchange is "very healthy", despite the impact of the coronavirus, according to its CEO.

Khalid Abdullah Al Hussan said in an interview to Bloomberg TV that there are four to five IPOs under review at the moment.

He also said the bourse plans to introduce futures contract in single stocks in the first half of next year.

The start of derivatives market will also help accelerate plans for an offering of shares in the bourse, Al Hussan said. Index futures started to trade in the exchange on August 30.

He also revealed that the average volume of trade increased by about three-fold amid the pandemic, with active participation of retail investors.

He added that the IPO of the stock exchange will be assessed in the first quarter of 2021, and could be accelerated since the launch of the derivatives market has been implemented.

Al Hussan also said that the exchange is working on increasing products and listings in order to attract more foreign investors.

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