Latest news with #Tadawul
Arab News
a day ago
- Business
- Arab News
Closing Bell: Saudi main index rises to close at 10,610
RIYADH: Saudi Arabia's Tadawul All Share Index rose on Thursday, gaining 19.58 points, or 0.18 percent, to close at 10,610.71. The total trading turnover of the benchmark index was SR6.4 billion ($1.7 billion), as 116 of the stocks advanced and 115 retreated. The Kingdom's parallel market Nomu lost 28.01 points, or 0.11 percent, to close at 26,175.83. This came as 35 of the listed stocks advanced while 41 retreated. The MSCI Tadawul Index lost 0.54 points, or 0.04 percent, to close at 1,367.14. The best-performing stock of the day was Alistithmar AREIC Diversified REIT Fund, whose share price surged 9.97 percent to SR7.50. Seera Group Holding also recorded strong gains, with its share price rising 7.99 percent to SR23.80, while Banan Real Estate Co. climbed 7.14 percent to close at SR4.50. Southern Province Cement Co. recorded the most significant drop, falling 5.19 percent to SR27.40. Ataa Educational Co. also saw its stock prices fall 3.43 percent to SR59.10. Leejam Sports Co. also saw its stock prices decline 3.01 percent to SR116. On the announcements front, Advance International Communications and Technology said it has completed the conversion of one of its branches into an independent limited liability company under the name Innovation Passage Technology Co. According to a statement on Tadawul, the move is part of the company's strategy to restructure its operations by separating the wholesale business sector. The new entity will take over all wholesale functions and operations. The company stated that the transformation is not expected to have a significant financial impact and that any further updates will be announced as they arise. Alujain Corp. announced that its board of directors has approved the distribution of SR51.9 million in cash dividends for the second quarter of 2025. A bourse filing revealed that the number of shares eligible for dividends is 69.2 million, with the dividend per share set at SR0.75. The dividend represents 7.5 percent of the share's par value. Alujain shares closed the session up 2.74 percent at SR35. United Cooperative Assurance Co. announced the signing of a memorandum of understanding with Arabia Insurance Cooperative Co. to evaluate a potential merger. According to a Tadawul filing, both parties will conduct technical, financial, tax, legal, and actuarial due diligence, and will enter into non-binding discussions regarding the terms and conditions of the proposed transaction. United Cooperative Assurance shares closed at SR6.70, up 0.75 percent.
Arabian Post
a day ago
- Business
- Arabian Post
Flynas IPO Falters Amid Regional Tensions
Saudi Arabia's budget carrier Flynas debuted on the Tadawul at SAR 80, raising SAR 4.1 billion, but shares closed at SAR 77.30—down over 3 %—despite an opening high of SAR 84.10 and a low of SAR 69.90. Investors responded nervously to heightened regional instability following military activity between Iran and Israel. Across Gulf markets, risk aversion sharply impacted airline stocks: Flynas dropped roughly 3.4 % on debut, ACWA Power slipped 3.3 %, and Saudi Aramco eased by 0.3 %. Regional airspace closures disrupted operations, forcing Gulf carriers to reroute flights and ramping up costs. Earlier trading saw Flynas plunge nearly 13 % to SAR 69.90 before recovering amid volatile swings capped by Tadawul's three-day fluctuation limit. Flynas marks the region's largest initial offering so far this year and the first by a Gulf airline in nearly two decades. The institutional tranche drew orders nearly 100 times publication, with the retail portion oversubscribed by 350 %, drawing 666,069 individual investors. ADVERTISEMENT Despite initial jitters, analysts stress Flynas's underlying strength. Its IPO pricing at the SAR 80 range reflects strong demand, and the airline's Saudi domestic base offers cost insulation from international fuel swings. SICO Bank remarked that while valuations were premium, the carrier's growth narrative remains compelling, even amid geopolitical uncertainty. The IPO's success adds momentum to the kingdom's capital markets, with six main‑market offerings this year raising over $2.8 billion and four others awaiting approval. Legal advisors note that despite market turbulence, appetite for public listings in the region remains robust. Operationally, Gulf airlines continue facing disruption. Several regional countries have closed airspace in response to conflict escalation, forcing airlines to reroute flights via longer corridors over Egypt and the Red Sea—pressuring operational efficiency. Fuel costs have jumped in tandem with the conflict, further squeezing airline margins. Gibson Dunn LLP acted as lead counsel, coordinating across global and local underwriting teams that included Goldman Sachs Saudi Arabia and Morgan Stanley Saudi Arabia. The combined institutional and retail interest helped the offering exceed $100 billion in orders. Flynas's Istanbul IPO arrives at a pivotal moment. The airline's strategic plan, backed by Kingdom Holding and the Public Investment Fund, aligns with Saudi Vision 2030's aim to transform the kingdom into a travel destination. Having ordered 160 aircraft from Airbus—including narrow-body A320s and its first wide-body A330s—the carrier is expanding fleet and network rapidly. Industry analysts caution that policy and geopolitical risks will continue to shape investor sentiment. While some entrants have postponed their floatings, many are proceeding quickly—optimising pricing and timing to counter valuation headwinds. The flight path for new listings in the Gulf may be turbulent, but Flynas's performance suggests that well-structured IPOs with strong fundamentals can still attract robust interest.
Asharq Al-Awsat
a day ago
- Business
- Asharq Al-Awsat
Primary Listings Maintain Strategic Allure in Saudi Market Despite Slower Momentum
Despite a noticeable slowdown in the pace of initial public offerings (IPOs) during the first five months of 2025, the Saudi stock market continues to attract strategic listings, reinforcing its commitment to the economic diversification goals of Vision 2030. The lull follows an exceptional year in 2024, with analysts attributing the current deceleration to a combination of global factors. Chief among them are the 7% decline in the Tadawul All Share Index (TASI) since the start of the year and intensifying geopolitical and trade tensions, particularly in the Middle East. Nonetheless, investor sentiment remains cautiously optimistic, buoyed by quality offerings in high-impact sectors. A case in point is the recent IPO of flynas, which debuted on the Saudi stock exchange (Tadawul) amidst heightened regional instability, notably the escalating Iran-Israel conflict. The airline's listing garnered strong institutional interest, generating an oversubscription of over SAR 409 billion ($109 billion). However, its first trading session reflected market nervousness, with shares dropping as much as 12% before recovering to close at SAR 77.80, a 2.75% loss. The debut saw a flurry of trading activity, with over 12 million shares exchanged in under an hour, valued at nearly SAR 900 million. The challenges facing regional carriers, ranging from airspace closures to route changes, have significantly inflated operational costs. Still, the IPO marked the first major listing on the main market since the outbreak of recent military tensions, underlining investor interest in key sectors despite a turbulent backdrop. flynas floated 51.3 million shares, representing 30% of its post-offer capital, with 80% allocated to institutional investors and 20% to retail. The company's market cap at listing was SAR 13.7 billion. The broader IPO landscape has been quieter compared to 2024, which saw 40 offerings totaling SAR 15.2 billion, including 14 listings on the main market and 26 on the parallel market (Nomu). The Saudi bourse ranked 9th globally in IPO volume and 7th in IPO returns last year, according to the Capital Market Authority's (CMA) board member Abdulaziz bin Hassan. Yet despite fewer IPOs this year, the focus has shifted toward strategic sectors. The March listing of Umm Al Qura for Development & Construction (Masar), which soared 30% on its debut, highlights investor appetite for real estate plays tied to national projects. Masar's shares climbed from SAR 15 at IPO to SAR 23 by early June. In contrast, United Carton Industries Company, which listed in late May at SAR 50, fell to SAR 41.35 amid a 46% drop in first-quarter profits. Still, experts note the firm's market niche in corrugated packaging gives it long-term relevance. Commenting on market dynamics, Mohammed Al-Farraj, Senior Head of Asset Management at Arbah Capital, emphasized the resilience of the Saudi exchange. He noted that Vision 2030 continues to drive economic diversification and investor confidence, even as oil prices exert a more contained influence, mainly on energy giants like Aramco. Al-Farraj also pointed to macroeconomic factors such as inflation and interest rates, stressing that elevated costs in housing and construction materials are pressuring real estate margins. However, expectations of interest rate cuts later in 2025 could provide a much-needed boost to real estate and financial services.
Argaam
a day ago
- Business
- Argaam
SAL signs addendum contract for SAR 9.6M Dammam station production services
SAL Saudi Logistics Services Co. signed an addendum to a contract with Almajal Service Master Co., under which SAL will receive productivity services for its Dammam station, at a value of SAR 9.6 million. According to a statement on Tadawul, the contract addendum extends from June 1, 2025, to May 31, 2026, and is renewable for an additional two years through an extension signed by both parties. SAL noted that the original contract, dated May 17, 2020, was disclosed in the company's prospectus, and that the addendum is effective June 1, 2025. It also confirmed that there are no related parties involved.
Argaam
a day ago
- Business
- Argaam
Seera board recommends 10% share buyback
Seera Group Holding 's board of directors recommended the repurchase of up to 10% of the company's ordinary shares following the completion of the capital cut, announced earlier today, June 19. According to a statement to Tadawul, these shares will be retained as treasury shares since the board believes the stock is currently undervalued compared to its fair value. The number of shares to be repurchased amounts to approximately 26.92 million, the statement noted, adding that the transaction will be funded through the company's own resources. The company said that this proposal is pending shareholders' approval and is subject to meeting all regulatory conditions. Additionally, the company affirmed that it will comply with the solvency requirements, as per the solvency report issued by the company's external auditor. The repurchased shares shall not have voting rights at general meetings, the statement added. Seera's board further recommended an 8.65% capital cut, or 8.65 shares for every 100 shares held, by canceling 25.95 million ordinary treasury shares. This includes approximately 2.03 million ordinary shares allocated to the company's employee stock program. Treasury shares currently account for 8.8% of total shares. Following the proposed cancellation, treasury shares would represent approximately 0.18% of the company's share capital.
