Riyad Bank Greenlights IPO for Investment Banking Unit, Riyad Capital
In a bold move, Saudi Arabia’s Riyad Bank has given the green light for the assessment and preparation of an initial public offering (IPO) for its investment banking arm, Riyad Capital.
Board Considers Listing on Main Market of Saudi Exchange
According to a statement from Tadawul, the board of directors is currently exploring the possibility of listing the subsidiary on the main market of the Saudi Exchange.
Collaboration to Finalize Assessment and Offering Details
Riyad Bank and Riyad Capital will work hand in hand to finalize the assessment and related measures, including determining the offering size and other pertinent details, as stated by the financial institution.
Regulatory Approvals Await Decision to Proceed
Should Riyad Bank decide to move forward with the IPO, it will be subject to regulatory approvals as per the announcement.
Stay Tuned for Further Developments
The Public Investment Fund-backed lender assures that any significant developments regarding the IPO will be disclosed in due time, in compliance with relevant regulations.
Riyad Capital: A Powerhouse in Asset Management and Investment Banking
Established in 2008, Riyad Capital is a force to be reckoned with in asset management, wealth management, investment banking, and brokerage services. Its partnership with Riyad Bank, one of Saudi Arabia’s largest financial institutions, provides a solid foundation for growth.
Recent Ventures and Financial Performance
In recent months, Riyad Capital collaborated with Saudi real estate firm Al-Ramz to launch the Durrat King Khalid Fund, a high-quality office property project in Riyadh. Additionally, the bank reported a 15% increase in net profit for 2023, reaching SR8.05 billion ($2.15 billion).
Saudi Arabia Leads Gulf Region in IPOs
A report from KAMCO Invest revealed that Saudi Arabia dominated the Gulf Cooperation Council region in IPOs last year, with 35 out of 46 listings taking place in the Kingdom. The Tadawul All Share Index saw eight deals, while the parallel market, Nomu, witnessed 27 IPOs in 2023.