Yaqeen Capital, a leading financial company in the Kingdom of Saudi Arabia, announced the signing of a strategic agreement with Abraj Electric Power Company (PTC). Under this agreement, Yaqeen Capital will act as the financial advisor and lead manager for Abraj Electric Power Company’s initial public offering (IPO) and listing on the Saudi Stock Exchange (Tadawul).
Background on Initial Public Offerings in the Saudi Market
This move comes amidst the remarkable activity witnessed in the Saudi capital market, which has become an attractive destination for companies seeking to enhance their growth and diversify their shareholder base. Initial public offerings (IPOs) are a key pillar of Saudi Vision 2030 , which aims to deepen the financial market, increase the private sector's contribution to GDP, and attract local and foreign investment. The Saudi Stock Exchange (Tadawul) has seen successful listings of companies across various sectors in recent years, reflecting strong confidence in the robustness of the Saudi economy and the advanced regulatory environment overseen by the Capital Market Authority.
Agreement details and listing stages
According to the official statement issued by Yaqeen Financial and published on the Saudi Stock Exchange (Tadawul) website, the process of arranging the initial public offering (IPO) and listing will proceed in several phases. These phases begin from the date of signing the agreement and include completing all regulatory procedures and requirements necessary to obtain official approvals from the Capital Market Authority, culminating in the actual listing of the company's shares on the main market. The company clarified that the financial impact of this agreement will be determined based on the progress of work in these phases and the successful completion of the IPO and listing process. It is expected that the revenue generated from this process will exceed 5% of Yaqeen Financial's total revenue as recorded in its most recent audited annual financial statements.
The importance of listing a company in the energy sector
The listing of “Abraj Electricity Energy Company” is of particular importance given its operation in a vital and strategic sector. The energy sector and its associated infrastructure are among the most important sectors supporting economic growth and industrial development in the Kingdom. Listing companies of this type contributes to enhancing transparency and governance in the sector and allows investors the opportunity to participate in the growth of one of the promising sectors that enjoys significant government support within the national industrial and logistics development programs. Furthermore, securing the necessary financing through the financial market will enable the company to expand its future projects and contribute more effectively to meeting the increasing demand for energy and supporting the national electricity grid.
Expected impact on the market and the economy
This listing is expected to have a multifaceted positive impact. Domestically, it will provide a new investment channel for citizens and residents, enhancing the depth and liquidity of the Saudi financial market. Regionally and internationally, the success of this offering will bolster Tadawul's position as one of the largest financial markets in the region and its ability to attract foreign capital, while also highlighting the significant investment opportunities within the Saudi economy amidst the major economic transformations underway in the country.
