TASI listing requests rise 70%

The article focuses on the continued rise in the number of IPO applications in the Saudi Stock Market "TASI." The number of applications reached 17 by the end of the second quarter of 2026, representing a 70% quarterly increase, despite the absence of actual offerings for 170 days— the longest halt in eight years. The Capital Market Authority (CMA) has not issued any new approvals for IPOs since the third quarter of 2023, raising questions about the reasons behind the failure to move from application submissions to actual offering stages. Despite the increasing number of applications, the market faces pressures, with most newly listed stocks trading without their offering prices. Investor appetite remains weak, and valuations of listed companies have declined, alongside reduced retail investor participation. On the other hand, companies continue to show interest in going public, with registration requests rising from 10 in the first quarter to 17 in the second, even though there have been no active IPOs so far. This situation is attributed to efforts by the Capital Market Authority to develop and improve listing practices, particularly by enhancing the reliability of applications and linking them to market liquidity. Such measures could open avenues to recalibrate the offering mechanisms and make the market more attractive to investors. It is worth noting that the absence of IPOs since April 2026 has led to a decline in market performance, with the index dropping 7.5% since the last listing, and 170 days passing— the longest period without new offerings in eight years.

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