The initial public offering of Al Ramz Real Estate Company recorded one of the weakest levels of individual participation on the Saudi stock exchange in about 6 years, after their segment’s coverage reached only 36% of the total shares allocated to them, which amounted to 2.57 million shares, representing 20% of the total offering. This is the second case within a month in which the entire subscription of individuals was not covered, after the presentation of Consortium Grünenfelder Saadi Holding (CGS), whose coverage recorded 70.9%, in a phenomenon that the market has rarely seen since the IPO of “Arabic Centers” (Cenomi data centers), when it reached 20%19 coverage of individuals. to 2015. This comes amid a general decline in market performance as the main “TASI” index declined. 12% since the start of 2025 amid a recent weakness in trading volume. Continued momentum in Saudi IPOs Despite the decline in individual demand, statements by the CEO of the Saudi Tadawul, Mohammed Al-Rumaih, show strong momentum to come, as the market is currently studying 40 applications for new initial offerings, according to what Bloomberg reported at the beginning of this month. Since the beginning of the year, the shares of 14 companies have been offered on the main market, including one canceled offer of the “EFSIM Facilities Management” company, while the proceeds of the executed offers amounted to 14.46 billion riyals ($3.85 billion), including “Al-Ramz,” according to “Al-Sharq” Tada statistics based on “Sharq” Tada statistics based on “Sharq” Tadawul. The Kingdom has thus consolidated its position as the most active IPO market in the region since the beginning of this year. So far, the market has listed 12 companies among the executed IPOs, but only three companies are trading above the offer price: “Comprehensive Path for Education,” “Sports Clubs,” and “Umm Al-Qura for Development and Reconstruction” (Masar). While the performance of the rest of the companies fell by varying percentages, ranging from 1.9% for “CGS” shares, to a drop of about 50% for “United Carton Industries” shares, followed by “Manzel Marketing Trading Group” (construction station) and “Arabia for Agricultural and Industrial Investment” (production) with declines of about one third.
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