If it is taken as an example for an individual investor or financial institution that subscribed in the last ten IPOs in the Saudi market with a value of 100 thousand riyals for a single offering (with a total of one million riyals), then the total return from the market increase only amounted to about 48 percent (1.48 million riyals). Within two years, an average of 24 percent for one year.
The majority of the last ten IPOs, some of which have been trading in the market for two years, still maintain trades above the offering price, and this definitely increases the efficiency level of the market.
In detail, the shares of Wataniya Education came the highest since its introduction on the market, compared to the rest of the ten offerings, as its shares rose by 163 percent to reach 1.33 billion riyals, compared to a market value of 817 million riyals upon offering.
This was followed by Sumou Real Estate Company, which trades in the parallel market, with its market value amounting to about 1.2 billion riyals, compared to about 600 million riyals at the time of the offering, with an increase of 103 percent, noting that the company was launched in May.
Third, "Sulaiman Al-Habib" came as the company's market value rose by about 13.1 billion riyals to 30.66 billion riyals, with an increase of nearly 75 percent, then the new guest, "Amlak International", which achieved a 40 percent increase in its market value to reach 2.03 billion riyals, compared to about 1.44 billion riyals before trading its shares.
On the other hand, the only offering, which is trading below the IPO price, is the "Arab Centers" company, where the stock's performance has been significantly affected by the repercussions of the spread of the Coronavirus, as it retreated from its highest level during the current year of 31.95 riyals to 25.6 riyals according to the closing of the last trading session, A price that is 1.2 percent below the offering price of 26 riyals.
Economic Reports Unit