Executive officials in the Saudi Stock Market said on Tuesday that the bourse plans to organize promotional meetings with foreign investors in the last quarter of this year with the opening of the market to direct foreign investment.
The Capital Market Authority announced last week that the market is currently worth 554 billion $, will open its door to direct foreign investment in June 15. Final rules that covers the opening of the market are scheduled to be issued on the fourth of May.
«Khaled Al-Rabiah» Chairman of trading management of "Tadawl" said during a press conference that the promotional tour will focus on North America and Europe.
«Khaled Alhussan» general manager of market management in "Tadawl" said that among those who will participate in promotional tours are investment companies and listed companies, but "Tadawl" will lead the process.
« Alhussan » pointed that the company will launch a new trading system «X-Stream INET» system which is applied in NASDAQ bourse under the plan for the development of systems, probably by the third quarter of the year, although this comes in conjunction with the entry of foreign investors to the market.
He told Reuters on the sidelines of a press conference «We got a very advanced stages in this regard ... expect the third quarter to be the right time to launch it».
On the other hand, «Al-Rabiah» told Reuters on the sidelines of the conference that "Tadawl" has spent more than 250 million riyals to strengthen its infrastructure during the past two years and it intends to use part of the available liquidity to it that is more than three billion riyals to improve services, systems and infrastructure in the next three years to the five.
Initial public offering is not a priority now
«Adel Ghamdi» chief executive officer of "Tadawl" said in last May that the market is looking to do the initial public offering and will use a financial advisor for this purpose soon.
However, «Al-Rabiah» said in Tuesday that the Public Investment Fund, which owns "Tadawl" has the first and the last opinion on subtraction adding that the subtraction procedure has not yet begun.
He continued saying that the company is currently focusing on improving its services and diversifying sources of income and its owners will look at this issue « when "Tadawl" possess enough cash flow to achieve continuity»
«Al-Rabiah» told Reuters on the sidelines of the conference that it is unlikely to implement the IPO this year because the company has other priorities on top of it opening the market to foreigners and investment in the modernization of systems and infrastructure, he said, «it is difficult to determine the time frame for the launch ... There are a lot of priorities at a time quo and must deal with it in the form that serves the public interest, and then look at the other things », adding:« I think in view of the priorities and on top of them is direct foreign investment and investment in the modernization of our systems ... (IPO) won't be this year because we are busy with a lot of other things».
On the other hand «Al-Rabiah» said that "Tadawl" holds continuously meetings with Saudi companies for listing on the stock market, but those companies will take time in making its decision about the new insertions and what arrangements need to be done but their aware increase about the importance of the insertion or at least separate management from property.
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