Saudi Arabia: the IPO market has not closed, it has stalled on price
Saudi Arabia has the region’s deepest IPO infrastructure. In 2025 it raised about SAR 15.8bn across 37 offerings.
Part II of our CIO Institutional Capital Markets series: Saudi Arabia.
Saudi Arabia has the region’s deepest IPO infrastructure. In 2025 it raised about SAR 15.8bn across 37 offerings. In the first eight months of 2026, three IPOs raised SAR 522.5m.
The market has not closed. It has stalled on price.
- TASI is down 3.7% year to date and 6.4% since June
- Q2 profit rose 37% (25% excluding Aramco), so most of the decline is a lower multiple, not weaker earnings
- Foreign investors were net buyers of US$1.6bn in Q2
- 10 of the 13 main market IPOs of 2025 were trading below offer in January
- Earnings yield sits only about 60bp above sukuk
Saudi Arabia’s next test is not issuance volume. It is whether the market can create value for investors after listing, under a higher required return and a real security premium. Full note with 11 exhibits and open research items in the attached PDF.
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Abstract
Part II of our CIO Institutional Capital Markets series: Saudi Arabia.
Saudi Arabia has the region’s deepest IPO infrastructure. In 2025 it raised about SAR 15.8bn across 37 offerings. In the first eight months of 2026, three IPOs raised SAR 522.5m.
The market has not closed. It has stalled on price.
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For institutional and professional investors. Not investment advice.
Eighteen years in investment management, M&A and financial technology. A CFA Charterholder, he leads investment analysis, valuation and fund structuring across Significa's advisory and investment practices, and teaches valuation and fund structures in the CVC Builder curriculum. Concurrently Chief M&A and Growth Officer at AlternativeSoft in London; co-founder of MarkeScope, which developed the first stock-screening solution to incorporate risk measures. Treasurer of CFA Society Egypt; BSc Electrical, Electronics and Communications Engineering, Cairo University.