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Riyad Bank considering IPO route for its investment banking unit

If Riyad Bank chooses to move forward with the offering, the IPO will be contingent upon receiving regulatory approvals

Riyad Bank, a Saudi financial institution, has given its approval for the evaluation and arrangement of Riyad Capital’s Initial Public Offering (IPO).

As stated in a Tadawul statement, the board of directors is thinking about listing the subsidiary on the Saudi Exchange’s main marketplace.

“Riyad Bank and Riyad Capital will coordinate to finalise the assessment as well as the relevant measures including determining the offering size as well as the other related details,” the financial institution in the statement, as reported by the Arba News.

If Riyad Bank chooses to move forward with the offering, the IPO will be contingent upon receiving regulatory approvals.

Any major developments in this regard will be announced in due course, in compliance with applicable regulations, according to the lender backed by the Kingdom’s Public Investment Fund (PIF).

Investment banking, asset management, wealth management, and brokerage services are provided by Riyad Capital, which was founded in 2008.

According to the company website, the company benefits from being a subsidiary of Riyad Bank, one of the biggest financial institutions in Saudi Arabia with a steadily expanding corporate and retail banking presence. Through this collaboration, Riyad Capital will be able to leverage the bank’s expertise and solid financial foundation.

To create a superior office property project, Riyad Capital and the Saudi real estate company Al-Ramz established the Durrat King Khalid Fund in March 2024. The project, which occupies 27,000 square metres and is located in the heart of the Kingdom’s capital, is owned by the Saudi Arabian government to the tune of 10% and PIF to the tune of 21%.

The bank declared in February that its net profit for 2023 increased to SR8.05 billion (USD 2.15 billion), a 15% gain over the year before.

A Tadawul statement claims that in 2023, the lender’s operating income increased by 17% year over year to SR15.89 billion, primarily due to increases in net special commission and other operating income.

Comparing the bank’s fourth-quarter 2023 net profit to the same period in the previous year, however, showed a 3.6% decline to SR1.95 billion.

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