Alpha Beta | From trading to cancellation or delisting, from the Saudi stock market until the end of the second quarter of 2024 AD



As the end of the second quarter of 2024 approaches, and with the market closing for the Eid al-Adha holiday, the number of companies that have been delisted from the Saudi Stock Exchange “Tadawul” has reached 20 companies. The most recent was Hail Cement Company, where on June 12, 2024, Tadawul announced the cancellation of Hail Cement’s listing after the company’s extraordinary general assembly approved an offer submitted by Qassim Cement Company to acquire all of its shares.

Companies canceled from listing on the Saudi stock market:

Hail Agricultural Development Company (HADCO):

Hail Agricultural Development Company (HADCO) was the first company to be delisted from the Saudi stock market. This was done on October 14, 2009 after Almarai Company acquired all of its shares, which constituted a turning point in the history of the Saudi financial market.

Integrated Communications Company:

The second company to be delisted was Integrated Telecommunications Company. This was done after a royal order was issued in May 2013 to liquidate the company. The liquidation process was supervised by a committee from the Ministry of Trade and Industry, the Capital Market Authority, and the Communications and Information Technology Commission. In April 2014, a royal order was issued to compensate non-founder shareholders with an amount of 30 riyals per share, which ensured that investors’ rights were protected and the company’s file was safely closed.

Al Mojil Group:

In May 2017, Al Mojil Group was delisted from the Saudi Stock Exchange. This came after the Capital Market Authority called on the boards of directors and shareholders of listed companies whose losses amounted to 50% or more of their capital to correct the conditions of their companies before the end of the deadline for applying Article 150 of the Companies Law. Because Mohammed Al-Mojil Group Company did not take the necessary regulatory measures, its listing was cancelled.

Companies canceled for the same reasons as Al Mojil Group:

In the same year, Al Mojil Group delisted Sanad Insurance, Weqaya Insurance and Bisha, for the same reasons. Failure to correct the regulatory conditions in accordance with the Financial Market Law, its executive regulations and the Companies Law was the common factor in these decisions, which underscores the importance of adhering to the regulatory requirements to ensure continued listing.

Companies delisted due to merger or acquisition:

Sahara Company: Its listing was canceled in May 2019 after its acquisition by Sipchem.

Alawwal Bank: June 2019 as a result of SABB Bank’s acquisition of its shares.

MetLife, AIG, and Arab Bank for Cooperative Insurance: Their listing was delisted in February 2020 after their acquisition by Walaa Insurance Company.

Al Ahlia Insurance Company: December 2020 after the merger with Gulf Union Company.

Solidarity Saudi Takaful Company: January 2021 after merging with Al Jazeera Takaful Company.

Samba Financial Group: April 2021 after the merger with the National Bank.

Al Ahly Takaful Company: January 2022 after merging with the Arabian Shield Insurance Company.

SABB Takaful Company: October 2022 after merging with Walaa Insurance Company.

These mergers and acquisitions reflect the dynamics of the Saudi financial market and the desire of companies to achieve expansion and growth through strategic conglomerates.

Other companies that were delisted for various reasons:

Wafa Insurance Company: Its listing was canceled in May 2022 after a decision was issued by the Commercial Court of Appeal in Riyadh to uphold the decision to end the financial reorganization procedure and open the liquidation procedure under the bankruptcy system.

Al-Khodari Company: Its listing was canceled in November 2021 after a ruling was issued by the Riyadh Commercial Court of Appeal upholding the decision to end the financial reorganization procedure and open the liquidation procedure under the bankruptcy system.

Dur Hospitality Company: It was delisted on April 12, 2023 after merging with Taiba Investment Company.

These decisions shed light on the transformations in the Saudi market, and reflect the dynamics of acquisitions and mergers and the regulatory procedures followed to ensure market stability and protect investors’ rights. Continuing to follow and analyze these transformations is necessary to understand the future of the Saudi financial market and its trends.

Special_alphabeta

ظهرت في الأصل على alphabeta.argaam.com

Leave a Comment