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Editor’s Note: The “Upcoming IPOs” information is updated whenever a new offering is announced via the Capital Market Authority or Saudi Tadawul, and the rest of the content remains static.
An Initial Public Offering (IPO) is the moment a company offers a portion of its shares to the public for the first time, before its shares begin trading on the market. Participating in it allows you to buy the stock at the offering price, before its price is determined between buyers and sellers in the market.
Upcoming IPOs
There are currently no public offerings open to retail investors in the main market (as of September 25, 2026). The year 2026 saw a sharp slowdown in offerings, as the number was limited to only 3 offerings up to August. The Capital Market Authority is currently seeking public feedback on new rules to improve IPO practices. We will update this section as soon as any new offering is announced.
What is an Initial Public Offering (IPO)?
According to the Capital Market Authority’s educational material, an Initial Public Offering (IPO) is the transformation of a company from private ownership to a public joint-stock company whose shares are traded on the market, and it is one of the most important ways to raise capital from investors. Whoever subscribes becomes a shareholder in the company from the first day of listing.
This market is very active in Saudi Arabia. The Authority notes that the number of listed companies reached 43 in 2023, exceeding the expectation of 24 companies, and 44 companies in 2024. Therefore, there are sometimes several offerings in a single month, making liquidity management and tracking deadlines an essential skill for the investor.
How Does the IPO Proceed Step by Step?
- Announcement of Intent to Offer: The company announces its desire to list and preliminary details.
- Book Building: Institutions submit their orders within an announced price range, based on which the final price is determined.
- Retail Subscription: Subscription is opened to individuals for several days through receiving entities and their applications.
- Final Allocation: The number of shares allocated to each subscriber is announced.
- Refund of Surplus: The excess amount is returned to your account.
- Listing and Start of Trading: The stock appears in your portfolio and begins trading on the market.
What IPO Risks Do Beginners Overlook?
The first mistake is believing that an IPO is guaranteed profit. Some offerings rise strongly in their early days, but others trade below the offering price for long periods. First-day performance does not tell you much about the quality of the investment over the long term.
The second risk is concentrated ownership and lock-up periods. Major shareholders are often restricted from selling for a period after listing, but upon expiration of the lock-up period, they may sell large quantities, which pressures the price. Therefore, know who the major owners are and when the lock-up periods expire before you subscribe.
Sources
- Capital Market Authority (Thameen Program): IPOs in the Financial Market
- Umm Al-Qura Newspaper: Instructions for Book Building and Allocation of Shares in Initial Public Offerings
- Disclaimer: This content is informational and educational, and is not considered a recommendation to participate in any IPO. Read the full prospectus before making a decision.
