A Saudi woman walks on the Saudi Stock Exchange (Tadawul), in Riyadh, Saudi Arabia, March 9, 2020. REUTERS / Ahmed Yosri

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DUBAI, Dec. 8 (Reuters) – Saudi Arabia’s stock exchange has received 50 requests from companies for initial public offerings (IPOs) next year and is considering whether or not to allow blank check companies, known as SPAC name, to register, said the group general manager Saudi Tadawul. said Wednesday.

A SPAC, or Special Purpose Acquisition Company, raises funds to acquire a private company with the goal of going public and allowing the target to list more quickly on a stock exchange rather than through an IPO. traditional purse.

Khalid al-Hussan, CEO of the owner and operator of the Tadawul exchange, said the exchange is discussing business models and assessing appetite for PSPCs in the kingdom, but added that no legal framework has yet been proposed. .

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“We are taking a very close look at this recent development (about PSPCs) and absolutely can’t wait to add this item to our market,” Hussan said after Tadawul launched its stock earlier today.

“We have to make sure that this vehicle is demanded by investors as well as issuers,” he said.

Shares of Tadawul opened at 115.4 riyals ($ 30.76) on Wednesday, nearly 10% above its listing price when it debuted in Riyadh. It was trading at 117.60 riyals by late afternoon.

The exchange, which raised around $ 1 billion through an IPO, valued its shares last week at the top of the range at 105 riyals each. Read more

Saudi Arabia’s stock index is up 27% year-to-date. The sale of Tadawul shares was the second-largest bid in the country after ACWA Power International, which raised $ 1.2 billion from investors.

Hussan said about 20 to 25 percent of the 50 sales of public shares slated for market next year are expected to be on the main draw.

“As far as market dynamics go, I think the markets are still very strong, when it comes to IPOs. It’s just a fantastic time for us,” Hussan said.

($ 1 = 3.7511 riyals)

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Reporting by Hadeel Al Sayegh and Saeed Azhar; Editing by Louise Heavens and Edmund Blair

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